Robbins Umeda LLP Is Investigating Savvis, Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of Savvis, Inc. (NASDAQ: SVVS). 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 Savvis in connection with their efforts to be acquired by CenturyLink, Inc. (NYSE: CTL).
On April 27, 2011, CenturyLink and Savvis announced that they have entered into a definitive agreement pursuant to which CenturyLink will acquire all outstanding shares of Savvis common stock in a cash and stock merger valued at $40 per share. Under the terms of the current transaction, Savvis shareholders will receive $30 per share in cash and $10 per share in CenturyLink common stock. The transaction is expected to close in the second half of 2011.
The investigation focuses on whether Savvis’s board is undertaking a fair process to obtain maximum value for its shareholders. At least one analyst has set a target price of $46 for Savvis’s shares. Further, on April 27, 2011, Savvis reported first quarter 2011 results that beat analyst estimates. Nevertheless, the offer price is only 11% above the company’s trading price the day before the announcement. Additionally, Savvis’s management team, including Chief Executive Officer Jim Ousley, will receive positions at the post-acquisition company.
If you own stock in Savvis 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.