Robbins Umeda LLP Is Investigating DPL Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of DPL Inc. (NYSE: DPL). The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of DPL in connection with their efforts to be acquired by the AES Corporation (NYSE: AES).
On April 20, 2011, DPL announced it has entered into a definitive agreement with AES under which AES will acquire DPL for approximately $3.5 billion in cash. Under the terms of the current agreement, DPL shareholders will receive $30 for each share of DPL stock they own, representing only an 8.7% premium over DPL’s closing price on April 19, 2011. The transaction is expected to close in the next six to nine months.
The investigation focuses on whether DPL’s board is undertaking a fair process to obtain maximum value for its shareholders. Of particular interest is, despite the low premium, the agreement between DPL and AES contains a termination fee which could reach as high as $106 million and a “no solicitation clause.” These sections of the agreement can serve to deter competitors from making higher offers for DPL.
If you own stock in DPL and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.