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If you are a current investor in AboveNet, Inc. (NYSE:ABVT) shares and purchased your NYSE:ABVT shares prior to March 19, 2012, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
San Diego, March 19, 2012 (Shareholders Foundation) -- The announcement by AboveNet, Inc. that its board of directors agreed a takeover of AboveNet, Inc. by Zayo Group, LLC for $84 per (NYSE:ABVT) share prompted an investigation for investors in AboveNet, Inc. (NYSE:ABVT) shares concerning whether the offer to acquire AboveNet, Inc. and the buyout process are unfair to investors in AboveNet, Inc. (NYSE:ABVT) shares.
The investigations by law firms concern whether certain officers and directors of AboveNet, Inc. breached their fiduciary duties owed to AboveNet, Inc. (NYSE:ABVT) investors in connection with the proposed acquisition.
On Monday, March 19, 2012, AboveNet, Inc. (NYSE: ABVT) and Zayo Group, LLC announced that their boards of directors have approved an agreement under which Zayo Group, LLC will acquire AboveNet for approximately $2.2 billion.
Under the terms of the proposed transaction, each share of AboveNet common stock issued and outstanding immediately prior to the transaction will be entitled to receive $84.00 per share in cash.
AboveNet, Inc said the offer represents a 13% premium over AboveNets closing price on March 16, 2012 and a 21% premium over the average closing stock price for the past 60 days.
However, AboveNets financial performance increased lately. In fact, AboveNet, Inc. (NYSE:ABVT) reported that its annual Revenue rose from $319million for 2008 to $472.50million in 2011 and its Net Income increased from $42.30million in 08 to $72.70million in 2011. Additionally, following the takeover announcement shares of AboveNet, Inc. (NYSE:ABVT) jumped from $74.25 per share on Friday to as high as $84.34 per share during Monday, March 19, 2012, thus above the current offer. Furthermore at least one analyst has set the high target price for NYSE:ABVT shares at $86 per share.
Therefore the investigation for NYSE:ABVT investors concerns whether the AboveNet Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to AboveNet, Inc. (NYSE:ABVT) shareholders by failing to adequately shop the Company before entering into this transaction.
