Proposed Acquisition of SWS Group, Inc. by Hilltop Holdings, Inc. May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of SWS Group, Inc. (NYSE: SWS) (“SWS”) by Hilltop Holdings, Inc. (NYSE:HTH) (“Hilltop”). On January 10, 2014, Hilltop submitted a written proposal to the board of directors of SWS to acquire all of the outstanding shares of SWS that Hilltop does not already own for $7.00 per share in 50% cash and 50% Hilltop common stock.
Is the Proposed Acquisition Best for SWS and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at SWS is undertaking a fair process to obtain maximum value and adequately compensate SWS shareholders. Specifically, the investigation concerns whether the SWS board will conduct an adequate auction process in order to maximize shareholder value, due to the close relationship between both companies. Not only does Hilltop currently own 24% of SWS common stock, but Hilltop’s Chairman, Gerald J. Ford, is a member of the SWS board of directors. Moreover, Hilltop’s President and Chief Executive Officer, Jeremy B. Ford, was made a non-voting observer to the SWS board.
Given these facts, Robbins Arroyo LLP is examining whether the SWS board of directors will appropriately consider the proposal from Hilltop at arm’s length or whether they are seeking to benefit themselves rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
SWS 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.
SWS 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.
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