Robbins LLP: Acquisition of Con-Way Inc. (CNW) by XPO Logistics, Inc. (XPO) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Con-Way Inc. (NYSE: CNW) by XPO Logistics, Inc. (NYSE: XPO). On September 9, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which XPO will acquire Con-Way. Under the terms of the agreement, Con-Way shareholders will receive $47.60 in cash for each share of Con-Way common stock.
Is the Proposed Acquisition Best for Con-Way and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Con-Way is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $47.60 merger consideration represents a premium of only 34% based on Con-Way’s closing price on September 9, 2015. This premium is significantly below the average one-day premium of nearly 41% for comparable transactions within the past three years. Further, the $47.60 merger consideration is significantly below the target price of $59.00 set by an analyst at Thompson, Davis & Company on September 16, 2013; the target price of $50.00 set by an analyst at Buckingham Research Group on July 13, 2015; and the target price of $49.00 set by an analyst at Macquarie on July 8, 2015. In the last three years, Con-Way traded as high as $53.54 on September 15, 2014, and most recently traded above the merger consideration – at $49.36 – on January 5, 2015.
Con-Way 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.
Con-Way 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.