Robbins Umeda LLP Announces an Investigation of SureWest Communications
Robbins Umeda has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of SureWest Communications (NASDAQ: SURW) in connection with their efforts to sell the company to Consolidated Communications Holdings, Inc. (NASDAQ: CNSL). Concerned 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 Gregory E. Del Gaizo at (800) 350-6003.
On February 6, 2012, it was announced that SureWest entered into a definitive merger agreement pursuant to which Consolidated Communications will acquire all outstanding shares of SureWest’s common stock in a cash and stock transaction. According to the terms of the deal, SureWest’s shareholders may elect to exchange each share of SureWest common stock for either $23.00 in cash or shares of Consolidated Communications common stock having an equivalent value based on average trading prices for the 20-day period ending two days before the closing of the acquisition, subject to a collar. Overall elections are subject to proration such that 50 percent of the SureWest shares will be exchanged for cash and 50 percent for stock. The transaction is expected to close in the third or fourth quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether SureWest’s Board is undertaking a fair process to obtain maximum value and adequately compensate shareholders. On October 27, 2011, SureWest announced better than expected financial results for the third quarter of 2011. The company reported quarterly revenue of $63 million, while analysts polled by Bloomberg had expected earnings of only $61.6 million. Additionally, the company’s positive performance is highlighted by SureWest’s 3% year-over-year revenue growth.
Robbins Umeda attorneys highlight that SureWest shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.