June 12, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in Beacon Federal Bancorp, Inc. (NASDAQ:BFED shares was announced concerning whether the offer to acquire BEACON FEDERAL BANCORP, INC. at a value of $20.35 per share and the takeover process are unfair to investors in NASDAQ:BFED shares.

The investigation by a law firm concerns whether certain officers and directors of BEACON FEDERAL BANCORP, INC. breached their fiduciary duties owed to NASDAQ:BFED investors in connection with the proposed acquisition.

On May 31, 2012, after the market closed Berkshire Hills Bancorp, Inc. (NASDAQ: BHLB) and Beacon Federal Bancorp, Inc. (NASDAQ: BFED) announced that they have signed a merger agreement under which Berkshire Hills Bancorp will acquire Beacon Federal Bancorp, Inc in a transaction valued at approximately $132 million.
Under the terms of the merger agreement, 50% of the outstanding Beacon shares will be exchanged for Berkshire shares at a fixed exchange ratio of 0.92 shares for each Beacon share, while the remaining 50% of Beacon shares will be exchanged for cash in the amount of $20.50 per share. The transaction is valued at $20.35 per Beacon share, based on the $21.96 Berkshire closing stock price on May 30, 2012.

However, Beacon Federal Bancorps financial performance improved over the recent years. Its annual Net Loss of $3million in 2008 turned in 2011 to a Net Income of $5.72million.

Therefore the investigation for NASDAQ:BFED investors concerns whether the proposed transaction is unfair to Beacon Federal Bancorp stockholders. Specifically, the investigation focuses on whether the BEACON FEDERAL BANCORP Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.