Avenue Financial Holdings Inc.
Robbins Arroyo LLP: Acquisition of Avenue Financial Holdings Inc. (AVNU) by Pinnacle Financial Partners Inc. (PNFP) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Avenue Financial Holdings Inc. (NASDAQ: AVNU) by Pinnacle Financial Partners Inc. (NASDAQ: PNFP). On January 28, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Pinnacle will acquire Avenue. Under the terms of the agreement, Avenue shareholders will receive $2.00 in cash and 0.36 shares of Pinnacle for each share of Avenue they own, the value of which is equivalent to $20.03 per share of Avenue.
Is the Proposed Acquisition Best for Avenue and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Avenue is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On January 28, 2016, Avenue reported strong earnings results for its fourth quarter 2015. Net income for the quarter was $2.1 million, an increase of 71.4% compared to the same period last year. Total loans for the quarter were $865.2 million, an increase of 20% compared to the same period last year. Additionally, Avenue has beat consensus analyst estimates for adjusted EPS and adjusted net income in every quarter for the past year.
In light of these facts, Robbins Arroyo LLP is examining Avenue’s Board of Directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Avenue 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. Avenue 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.