Robbins Umeda LLP Announces an Investigation of General Bearing Corporation
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of General Bearing Corporation (OTC: GNRL: PK) in connection with their efforts to sell the company to SKF Group. Concerned 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 Gregory E. Del Gaizo at (800) 350-6003.
On February 13, 2012, it was announced that General Bearing entered into a definitive merger agreement pursuant to which SKF Group will acquire all outstanding shares of the company’s common stock in an all cash-transaction. According to the terms of the deal, General Bearing shareholders will receive $28.00 for each share of the company they own. The transaction is structured as a merger requiring approval of a majority of General Bearing’s shareholders at a special meeting, which is expected to take place on March 19, 2012.
Robbins Umeda LLP’s investigation focuses on whether General Bearing’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders. Significantly, the deal represents only a 16.67% premium, well below an average premium of 35.7% over the past two years for comparable transactions in the “Metal Fabricators” sector. In addition, on November 8, 2011, General Bearing reported financial results for the third quarter of 2011 that indicated strong financial performance at the company. General Bearing reported a diluted EPS of $1.10, a figure that represented a 223% increase over EPS reported in the same quarter of 2010. In addition, Robbins Umeda LLP is investigating whether the price to revenue multiple that SKF Group would be paying is below that of comparable transactions in the company’s sector.
Robbins Umeda attorneys highlight that General Bearing shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.