Acquisition of Eloqua, Inc. by Oracle Corporation May Not Be in Eloqua’s Shareholders’ Best Interests
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Eloqua, Inc. (NASDAQ: ELOQ) in connection with their efforts to sell the company to Oracle Corporation (NASDAQ: ORCL). Eloqua is a provider of cloud-based marketing automation and revenue performance management software.
On December 20, 2012, Eloqua and Oracle announced they had entered into an agreement under which Oracle will acquire Eloqua through an all cash offer that values the company at $810 million. Eloqua shareholders will receive $23.50 per share. The transaction is expected to close in the first half of 2013.
The Board of Directors’ Actions May Prevent Eloqua Shareholders from Receiving the Maximum Value for Their Stock
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Eloqua is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. The $23.50 per share offer price is substantially below target prices set by several analysts. For example, an analyst at J.P. Morgan set a target price of $27 and an analyst at Needham & Company set a target price of $26. Further, the $23.50 per share offer price is significantly below the $24.83 share price the stock traded at on November 1, 2012. Further, on October 24, 2012, Eloqua announced strong financial results for the third quarter 2012. For the quarter, the company reported record revenue of $23.8 million, an increase of 30% over the same quarter in 2011. Moreover, subscription and support revenues increased 32% over the same quarter in 2011. Given, these facts, the firm is examining whether the board of directors’ decision to sell Eloqua for $23.50 per share is fair to shareholders and maximizes the value for their shares.
Eloqua shareholders have the option to file a class action lawsuit against the company to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.
Eloqua shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Darnell R. Donahue at (800) 350-6003
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