Acquisition of ATMI, Inc. by Entegris, Inc. May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the acquisition of ATMI, Inc. (NASDAQ: ATMI) by Entegris, Inc. (NYSE: ENTG). On February 4, 2014, the two companies announced the signing of a definitive merger pursuant to which Entegris will acquire ATMI in an all-cash offer which will pay ATMI shareholders $34.00 per share of common stock.
Is the Proposed Merger Best for ATMI and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at ATMI is undertaking a fair process to obtain maximum value and adequately compensate ATMI shareholders in the merger.
As an initial matter, the $34.00 merger consideration is below the target price of $36.00 set by an analyst at D.A. Davidson on December 24, 2013. In addition, the merger consideration represents a premium to shareholders of approximately 26% based on the company’s closing price on February 3, 2014. This one day premium is significantly below the average one day premium of over 41% for comparable transactions in the last three years.
Further, the proposed acquisition price fails to reflect the company’s promising business prospects. On February 4, 2014, ATMI released its fourth quarter 2013 earnings, reporting notably strong demand for products in Microelectronics. Specifically, the company reported revenue increased to $94.8 million, or 6%, compared to the same quarter 2012. In addition, ATMI beat Bloomberg analyst estimates for EPS by 44.26% and net income by 46.21%.
Given these facts, Robbins LLP is examining the ATMI board of directors’ decision to sell the company to Entegris now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
ATMI 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.
ATMI 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.