Robbins LLP: Acquisition of Monster Worldwide, Inc. (MWW) by Randstad Holding NV (RAND) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Monster Worldwide, Inc. (NYSE: MWW) by Randstad Holding NV (EN Amsterdam: RAND). On August 9, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Randstad will acquire Monster Worldwide. Under the terms of the agreement, Monster Worldwide shareholders will receive $3.40 for each share of Monster Worldwide common stock.
Is the Proposed Acquisition Best for Monster Worldwide and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Monster Worldwide is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $3.40 merger consideration represents a premium of only 22.70% based on Monster Worldwide’s closing price on August 8, 2016. This premium is significantly below the average one day premium of nearly 40.63% for comparable transactions within the past three years. Further, the $3.40 merger consideration is significantly below the target price of $4.00 set by an analyst at Evercore ISI on May 9, 2016, the target price of $4.00 set by an analyst at Piper Jaffray on May 6, 2016, and the target price of $3.50 set by an analyst at B Riley & Co on February 12, 2016. In the last three years, Monster Worldwide traded as high as $8.50 on March 7, 2014, and most recently traded above the merger consideration – at $3.48 – on April 28, 2016.
Monster Worldwide 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.
Monster Worldwide 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.