Robbins LLP Alerts Shareholders that the Acquisition of Colonial Financial Services, Inc. (COBK) by Cape Bancorp, Inc. (CBNJ) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Colonial Financial Services, Inc. (NasdaqGM: COBK) by Cape Bancorp, Inc. (NasdaqGM: CBNJ). On September 10, 2014, the companies announced the signing of a definitive merger agreement pursuant to which Cape Bancorp will acquire Colonial Financial. Under the terms of the agreement, holders of Colonial Financial can elect to receive $14.50 per share in cash or 1.412 shares of Cape’s common stock for each share of Colonial Financial owned.
Is the Proposed Acquisition Best for Colonial Financial and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Colonial Financial is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $14.50 merger consideration represents a premium of only 10.9 % based on the company’s closing price on September 10, 2014. This premium is significantly below the average one day premium of 46.2% for comparable transactions in the past three years. Further, Colonial Financial has traded above the offer price within the last year, reaching as high as $15.00 on September 20, 2013.
In light of these facts, Robbins LLP is examining Colonial Financial’s board of directors’ decision to merge the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Colonial 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.
Colonial 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.