M & F Worldwide Corp.
Robbins Umeda LLP Is Investigating the Acquisition of M & F Worldwide Corporation
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of M & F Worldwide Corporation (NYSE: MFW). 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 MFW in connection with the proposed merger of MFW with a subsidiary of MacAndrews & Forbes Holdings Inc.
On June 13, 2011, MacAndrews & Forbes proposed a transaction pursuant to which MFW would be merged with a subsidiary of MacAndrews & Forbes, and all outstanding shares of common stock of MFW not owned by MacAndrews & Forbes would be converted into the right to receive $24.00 per share.
The investigation focuses on whether MFW’s board is undertaking a fair process to obtain maximum value and adequately compensate its shareholders, particularly in light of the company’s recent trading price. In May 2011, the company’s stock traded over the offer price on multiple occasions, trading as high as $24.35, and closing at $24.04 on May 5, 2011. Moreover, the relationship between MFW and MacAndrews & Forbes calls into question the terms of the proposed agreement. For example, MacAndrews & Forbes holds 43% of MWF’s outstanding stock. Further, since 2005, MacAndrews & Forbes has provided the services of MWF’s Chief Executive Officer and Chief Financial Officer, as well as other management, advisory, transactional, corporate financial, legal, risk management, tax and accounting services at a rate of $10 million per year.
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