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Published in House and Home on Wednesday, April 24th 2013 at 18:00 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
Acquisition of Buckeye Technologies Inc. by Georgia-Pacific LLC May... -- SAN DIEGO and MEMPHIS, Tenn., April 24, 2013 /PRNewswire/ --
SAN DIEGO and MEMPHIS, Tenn., April 24, 2013 /PRNewswire/ -- [ Shareholder rights attorneys ] at Robbins Arroyo LLP are investigating the acquisition of Buckeye Technologies Inc. (NYSE: [ BKI ]) by Georgia-Pacific LLC, a private pulp and paper company. On April 24, 2013, the companies announced that they have reached a definitive agreement for Georgia-Pacific to acquire all outstanding shares of Buckeye Technologies' common stock for $37.50 per share in cash. The transaction is valued at approximately $1.5 billion, including debt.
(Logo: [ http://photos.prnewswire.com/prnh/20130103/MM36754LOGO ])
The Board of Director's Actions May Prevent Buckeye Technologies Shareholders from Receiving Maximum Value for Their Stock
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Buckeye Technologies is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger. Notably, two analysts project a target price above the current $37.50 offer price: $40.00 by D.A. Davidson & Co. and $38.00 by Sidoti & Company, LLC.
Is the Acquisition Best for Buckeye Technologies and Its Shareholders?
On January 29, 2013, Buckeye Technologies released its earnings for the second quarter 2013, which reflected net sales of $204.3 million—a 4% increase from the first quarter 2013—and adjusted net income of $23.6 million. Further, the company's Form 8-K filed on January 30, 2013, quoted Chairman and Chief Executive Officer John B. Crowe as saying, "'During the [second] quarter [2013], we continued to make good progress on our Specialty Expansion and Oxygen Delignification Projects at our Foley facility. Both are important projects which will be key contributors for revenue growth and cost reduction, and are expected to come on-line in April and July 2013 respectively.'"
Given these facts, the firm is examining the board of directors' decision to sell Buckeye Technologies now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Buckeye Technologies shareholders have the option to file a [ class action lawsuit ] to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner. Buckeye Technologies shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, [ ddonahue@robbinsarroyo.com ], or via the [ shareholder information form ] on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to [ http://www.robbinsarroyo.com ].
Press release link: [ http://www.robbinsarroyo.com/shareholders-rights-blog/buckeye-technologies-inc/ ]
Attorney Advertising.Past results do not guarantee a similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
[ ddonahue@robbinsarroyo.com ]
(619) 525-3990 or Toll Free (800) 350-6003
[ www.robbinsarroyo.com ]
SOURCE Robbins Arroyo LLP
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