Acquisition of Duff & Phelps Corporation by Private Investor Consortium May Not Be in Duff & Phelps Corporation Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Duff & Phelps Corporation (NYSE: DUF) by affiliates of The Carlyle Group, Stone Point Capital LLC, Pictet & Cie, and Edmond de Rothschild Group (collectively, the “Consortium”). Duff & Phelps is a global financial advisory and investment banking firm.
On December 30, 2012, Duff & Phelps announced that it had entered into a definitive merger agreement under which it will be acquired by the Consortium for $15.55 per share. The transaction has been approved by the board of directors of Duff & Phelps. Additionally, all members of the senior management team have agreed to remain employed by, and invest in the equity of, the company following the closing of the transaction.
The Board of Directors’ Actions May Prevent Duff & Phelps Shareholders from Receiving the Maximum Value for Their Stock
Robbins LLP’s investigation focuses on whether the board of directors at Duff & Phelps is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in light of the proposed acquisition. The $15.55 per share offer price is significantly below the $24 target price set by an analyst at Sidoti & Company LLC. Further, company’s stock has traded above the offer price 201 of the 756 trading days during the three years prior to the merger agreement. Finally, on October 25, 2012, Duff & Phelps reported their third quarter 2012 earnings, in which quarterly revenue, including reimbursable expenses, saw an 18.3% increase over the corresponding prior year quarter. Given, these facts, the firm is examining the board of directors’ decision to sell Duff & Phelps now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Duff & Phelps shareholders have the option to file a class action lawsuit against the company to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.
Duff & Phelps shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Darnell R. Donahue at (800) 350-6003.