Robbins Umeda LLP Is Investigating CKx, Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of CKx, Inc. (NADSAQ: CKXE). 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 CKx in connection with their efforts to sell CKx to an affiliate of Apollo Global Management.
On May 10, 2011, CKx announced it has entered into a definitive merger agreement to be acquired by an affiliate of Apollo. Under the terms of the agreement, CKx shareholders will receive $5.50 in cash for each share that they hold. The acquisition of CKx will be completed through a cash tender offer that is expected to commence shortly and will expire twenty business days after it commences. The tender offer will be followed by a merger in which each share of common stock not acquired in the tender offer will be converted into the right to receive $5.50.
The investigation focuses on whether CKx’s board is undertaking a fair process to obtain maximum value for its shareholders. Following CKx’s fourth quarter 2010 earnings results, at least one analyst maintained its $8.00 price target, noting the belief that CKx shares are undervalued. Further, in connection with the agreement reached with CKx, Apollo has obtained support agreements from two significant shareholders, The Promenade Trust, the sole beneficiary of which is Lisa Marie Presley and CKx’s partner in Elvis Presley Enterprises, and Robert F.X. Sillerman, CKx’s largest shareholder.
If you own stock in CKx 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.