11/15/2012 11:29:00 AM
NEWS BRIEFS
Shareholders Mull Lawsuits over PCC-Timet Deal
At least eight law firms are mulling shareholder lawsuits stemming from Precision Castparts’ pending acquisition of Titanium Metals Corp. (Timet), American Metal Market reports.
In early November PCC announced that it would acquire Timet for $2.9 billion.
Both company boards unanimously approved the deal, which would be funded through a combination of cash on hand, commercial paper, bank debt, and proceeds from the sale of notes and bonds.
But the law firms are questioning the $16.50 per share that PCC intends to pay for Timet, according to AMM.
The firms include Bernstein Liebhard LLP, Kirby McInerney LLP, Levi & Korsinsky LLP, and Harwood Feffer LLP, all based in New York, as well as Finkelstein Thompson LLP in Washington DC, according to AMM.
In a press release, Finkelstein Thompson expressed concern that the deal shortchanges Timet shareholders.
“Under the terms of the transaction, Titanium shareholders would only receive $16.50 per share in cash, and at least one analyst has set a target price of $20.00 per share.”
The law firm said its investigation is “focused on the potential unfairness of the consideration to Titanium shareholders, the process by which the Company’s Board of Directors is considering the transaction, and potential conflicts of interest among Titanium’s Board members.”
Statements from other firms investigating the deal expressed similar misgivings.
Timet manufactures a product range that includes ingot, slab, forging billet and mill forms at its factories in California, Nevada, Ohio, Pennsylvania, England, Wales and France.
The deal is expected to close by the end of 2012, after which Timet’s results will be reported as part of PCC’s Forged Products segment. ©2012 GlobalFastenerNews.com
Related Stories:
• Precision Castparts Signs $2.9b Titanium Metals Corp. Deal
Share: