Robbins LLP: Acquisition of Astoria Financial Corporation (AF) by New York Community Bancorp Inc. (NYCB) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Astoria Financial Corporation (NYSE: AF) by New York Community Bancorp Inc. (NYSE: NYCB). On October 29, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which New York Community Bancorp will acquire Astoria Financial. Under the terms of the agreement, Astoria Financial shareholders will receive $0.50 in cash and one share of New York Community Bancorp for each share of Astoria Financial they own, the value of which is equivalent to $19.66 per share of Astoria Financial.
Is the Proposed Acquisition Best for Astoria Financial and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Astoria Financial is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
The $19.66 merger consideration represents a premium of 18.8% based on Astoria Financial’s one-month average closing price prior to rumors of the deal surfacing in the media on October 23, 2015, which is below the average one-month premium of nearly 22.4% for comparable transactions within the past five years.
In light of these facts, Robbins LLP is examining Astoria Financial’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Astoria Financial shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Astoria Financial shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.