Hawaiian Telcom Holdco, Inc.
Robbins Arroyo LLP: Acquisition of Hawaiian Telcom Holdco, Inc. (HCOM) by Cincinnati Bell Inc. (CBB) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Hawaiian Telcom Holdco, Inc. (NASDAQ: HCOM) by Cincinnati Bell Inc. (NYSE: CBB). On July 10, 2017, the two companies announced the signing of a definitive merger agreement pursuant to which Cincinnati Bell will combine with Hawaiian Telcom. Under the terms of the agreement, Hawaiian Telcom shareholders will receive either $30.75 in cash, 1.6305 shares of Cincinnati Bell common stock, or a mix of $18.45 in cash and 0.6522 shares of Cincinnati Bell common stock for each share of Hawaiian Telcom common stock.
Is the Proposed Acquisition Best for Hawaiian Telcom and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Hawaiian Telcom is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $30.75 merger consideration represents a premium of only 23% based on Hawaiian Telcom’s closing price on July 7, 2017. This premium is significantly below the average one-month premium of approximately 34% for comparable transactions within the past five years. Further, the $30.75 merger consideration is significantly below the target price of $35.00 initially set by an analyst at Drexel Hamilton LLC on August 5, 2013, and reiterated as recently as May 10, 2017.
Hawaiian Telcom 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.
Hawaiian Telcom shareholders interested in information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, firstname.lastname@example.org, or you can complete the form below and we will contact you directly.