APAC Customer Services, Inc.
Robbins Umeda LLP Announces an Investigation of APAC Customer Services, Inc.
Robbins Umeda LLP, a shareholder rights litigation 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 APAC Customer Services, Inc. (NASDAQ: APAC) in connection with their efforts to sell the company to an affiliate of One Equity Partners, the private investment arm of JPMorgan Chase and Company.
On July 7, 2011, APAC announced that it had entered into a definitive merger agreement under which One Equity Partners will acquire all outstanding shares of the company in a cash transaction. Upon closure, the deal would cause APAC shareholders to receive only $8.55 per share of APAC they own. The transaction is expected to close by the fourth quarter of 2011.
The investigation focuses on whether APAC’s board is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in light of the company’s recent positive financial results. Market analysts have recently issued target prices for APAC that value the company’s stock at $9.00 per share, above the price being offered as a part of the merger agreement. Additionally, the company reported first quarter results for 2011 that beat many analyst expectations. On May 11, 2011, APAC announced that its revenue was $88 million for the quarter – beating analyst predictions of $85.55 million – reflecting an increase of 3.3% over the same period last year. Moreover, in the same May 11, 2011 press release, the company’s Chief Financial Officer, Andrew Szafran, predicted that APAC shareholders would continue to see earnings per share of $0.47 to $0.49, and the company would likely earn between $346 and $350 million in revenue for fiscal year 2011.
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