Pulaski Financial Corporation
Robbins Arroyo LLP: Acquisition of Pulaski Financial Corp. (PULB) by First Busey Corporation (BUSE) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Pulaski Financial Corp. (NASDAQ: PULB) by First Busey Corporation (NASDAQ: BUSE). On December 3, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which First Busey will acquire Pulaski Financial. Under the terms of the agreement, Pulaski Financial shareholders will receive 0.79 shares of First Busey for each share of Pulaski Financial they own, the value of which is equivalent to $17.24 per share of Pulaski Financial.
Is the Proposed Acquisition Best for Pulaski Financial and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Pulaski Financial is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $17.24 merger consideration represents a premium of only 1.4% based on Pulaski Financial’s closing price on December 3, 2015. This premium is significantly below the average one-day premium of nearly 24% for comparable transactions within the past three years. Most recently, Pulaski Financial traded above the merger consideration – at $17.25 – on December 2, 2015.
On October 27, 2015, Pulaski Financial reported strong earnings results for its fourth quarter 2015. Net interest income for the quarter was $11.5 million, an increase of 3.6% compared to the same period last year. Earnings available to common shareholders were $3.6 million, an increase of 7.8% compared to the same period last year. Additionally, Pulaski Financial has beat consensus analyst estimates for adjusted net income in three out of its past four quarters, and has beat consensus analyst estimates for sales in every quarter for the past year.
In light of these facts, Robbins Arroyo LLP is examining Pulaski Financial’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.
Pulaski Financial 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.
Pulaski Financial 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.