JAVELIN Mortgage Investment Corporation
Robbins Arroyo LLP: Acquisition of JAVELIN Mortgage Investment Corp (JMI) by ARMOUR Residential REIT Inc (ARR) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP are investigating the proposed acquisition of JAVELIN Mortgage Investment Corp. (NYSE: JMI) by ARMOUR Residential REIT Inc. (NYSE: ARR). On March 2, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which ARMOUR will acquire JAVELIN. Under the terms of the agreement, JAVELIN shareholders will receive $7.14 in cash for each share of JAVELIN common stock.
Is the Proposed Acquisition Best for JAVELIN and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the Board of Directors at JAVELIN is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $7.14 merger consideration represents a premium of only 19% based on JAVELIN’s closing price on March 1, 2016. This premium is below the average one-day premium of nearly 24% for comparable transactions within the past year. In the last three years, JAVELIN traded as high as $20.20 on May 3, 2013, and most recently traded above the merger consideration – at $7.15 – on August 20, 2015.
In light of these facts, Robbins Arroyo LLP is examining JAVELIN’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.
JAVELIN 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. JAVELIN 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.