Central Vermont Public Service Corporation
Robbins Umeda LLP Is Investigating Central Vermont Public Service for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of Central Vermont Public Service (NYSE: CV). 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 Central Vermont in connection with their efforts to sell the company to Fortis Inc. (TSX: FTS).
On May 30, 2011, Fortis announced it had entered into an agreement to acquire all outstanding shares of Central Vermont common stock for $35.10 per share in cash. The transaction is expected to close within six to twelve months.
The investigation focuses on whether Central Vermont’s board is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in light of the company’s recent positive performance. On May 5, 2011, Central Vermont reported first quarter 2011 results twenty-seven cents higher than 2010. In addition, the merger agreement contains terms that may serve to deter competitors from making higher offers for Central Vermont that reflect these recent positive results. For example, the merger agreement contains a termination fee of $19.5 million, a no solicitation clause, and a matching rights clause.
If you own stock in Central Vermont 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.