Robbins Umeda LLP Announces an Investigation of Knology, Inc.
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 Knology, Inc. (NASDAQ: KNOL) in connection with their efforts to sell the company to WOW! Internet, Cable & Phone. 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 April 18, 2012, Knology announced that it had entered into a definitive merger agreement to be acquired by a subsidiary of WOW!. According to the terms of the deal, WOW! will acquire all outstanding shares of Knology through an all-cash transaction. Pursuant to the agreement, Knology shareholders will receive $19.75 for each share of the company they own.
Robbins Umeda LLP’s investigation focuses on whether Knology’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent positive financial results. Notably, the transaction represents a mere 9.4% premium to Knology’s April 17, 2012 closing price. In contrast, over the past five years, shareholders have been paid an average premium of approximately 38% in comparable transactions, according to data compiled by Bloomberg.
Further, on February 16, 2012, Knology announced financial results for the fourth quarter and fiscal year ended December 31, 2011 that represented substantial increases over 2010 results. The company reported that revenue for the year increased 12.8% over 2010 levels to $518.6 million and that GAAP operating income increased 33.3% over 2010 levels to $82.7 million. Given these impressive financial results, Robbins Umeda LLP is examining the board’s decision to sell Knology rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Robbins Umeda attorneys highlight that Knology 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.