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Allied Healthcare International Inc Investor Files Lawsuit Against Takeover

  • If you purchased shares of Allied Healthcare International Inc. (NASDAQ: AHCI) prior to the announcement and currently hold those shares, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Allied Healthcare International Inc.
Security
NASDAQ: AHCI

Case Name
Allied Healthcare Intl Deal Case 08/05/2011
Type of Lawsuit
Mergers and Acquisition
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Summary

San Diego, Aug 05, 2011 (Shareholders Foundation) -- An investor in shares of Allied Healthcare International Inc. (NASDAQ: AHCI) filed a lawsuit against directors of Allied Healthcare Intl in effort to block the proposed takeover of Allied Healthcare Intl by Saga Group Limited.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed to Allied Healthcare Intl (NASDAQ:AHCI) investors arising out of the attempt to sell Allied Healthcare Intl Inc too cheaply via an unfair process to U.K.-based insurer Saga Group Ltd.

On Friday, July 29, 2011, Allied Healthcare International Inc. (NASDAQ: AHCI) had announced that it has entered into an agreement to be acquired by Saga Group Limited for $3.90 per share. The aggregate purchase price for all outstanding shares of Allied Healthcare International Inc common stock, including outstanding options, will be approximately $175 million. Allied Healthcare International Inc said the $3.90 offer represents a premium of 59% to Allied Healthcare International Inc's closing price on July 28, 2011 of $2.45.

Following the takeover announcement shares of Allied Healthcare International (Public, NASDAQ:AHCI) jumped from $2.44 on Thursday to $3.85 on Friday.

However, the plaintiff alleges that the $3.90 offer undervalues Allied Healthcare International, is unfair and grossly inadequate. In fact Allied Healthcare Intl financial performance was improving lately. Allied Healthcare was able to increase its 12months Total Revenue from $249.81million reported on Sept. 30, 2009 to $271.08million reported on Sept. 30, 2010. Its first three months Total Revenue rose from $65.53million a year earlier to $69.22million.