Willie Briscoe , a former United States Securities and Exchange Commission attorney and the securities litigation firm of Powers Taylor, LLP has begun an investigation regarding the acquisition of Pharmaceutical Product Development, Inc. by the private equity companies The Carlyle Group and Hellman & Friedman for the shareholders of Pharmaceutical Product Development, Inc.
The proposed buyout of Pharmaceutical Product Development, Inc. would leave shareholders with a payout of only $33.25 in cash for each share of the company that they owned. Since the company is going private, there would be no option to convert to shares to stock in the parent company. Given their limited options and the cost per share offered, many of the stockholders believe that this is an undervaluation. “We believe that the transaction may significantly undervalue Pharmaceutical Product Development stock, and our anticipated lawsuit will seek to obtain the highest share price for all shareholders,” said shareholder rights attorney Willie Briscoe.
The final acquisition agreement is based around an all cash transaction, which values the company at roughly $3.79 billion, which includes the assumption of approximately $136 million in debts that the company is currently holding.
The Pharmaceutical Product Development Inc. reported that the price of the shares represents a 29.6% premium over the Pharmaceutical Product Development’s closing price the day before the announcement, though in mid-August the shares in Pharmaceutical Product Development Inc. were closing at a price of $32.20 per share, making the $33.25 significantly lower than the listed premium of 29.6%.
Adding to the shareholders claims is the fact that analysts at Thompson/First Call have set the price of the shares in Pharmaceutical Product Development Inc as high as $38.00 per share. “Based on these and other factors, we are investigating the fairness of the proposed transaction to Pharmaceutical Product Development shareholders, whether the shareholders are being underpaid for their stock, and whether Pharmaceutical Product Development’s Board of Directors acted in the shareholders’ best interest,” said Willie Briscoe in the statement.
Currently no motions to halt or delay the transaction have been filed, though they may occur during or after the investigation. The transaction is expected to be completed in the fourth quarter of 2011.
If you are an affected investor who would like to learn more about the lawsuit or join the action, you should contact Patrick Powers at Powers Taylor, LLP . They have both a toll free phone line, (877) 728-9607, or if you prefer you can e-mail the firm at firstname.lastname@example.org. Alternative you may contact Mr. Willie Briscoe at The Briscoe Law Firm, PLLC, via phone at (214) 706-9314, or by email at WBriscoe@TheBriscoeLawFirm.com.
“The Briscoe Law Firm, PLLC is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation and transactional matters,” according to a news release on chron.com
“Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions,” according to the same news release on chron.com