Investigation Overview
September 4, 2015 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Blyth, Inc. (NYSE:BTH), was announced concerning whether the takeover of Blyth, Inc. by The Carlyle Group for $6.00 per share is unfair to NYSE:BTH stockholders.
The investigation by a law firm concerns whether certain officers and directors of Blyth, Inc. breached their fiduciary duties owed to NYSE:BTH investors in connection with the proposed acquisition.
On August 31, 2015, Global alternative asset manager The Carlyle Group (NASDAQ: CG) and Blyth, Inc. (NYSE:BTH) announced they have entered into an agreement under which The Carlyle Group will acquire all of Blyths outstanding shares of common stock in a transaction valuing Blyth at $98 million, equating to $6.00 per share.
However, given that at least one analyst has set the high target price for NYSE:BTH shares at $40 per share, given that NYSE:BTH shares traded in early 2015 over $9.00 per share, and given that NYSE: BTH traded in 2014 as high as $10.86 per share, the investigation concerns whether the offer is unfair to NYSE:BTH stockholders.
In addition, given that Robert B. Goergen, Blyths Chairman of the Board, and Robert B. Goergen, Jr., Blyths President and Chief Executive Officer, who beneficially own approximately 38% of Blyths outstanding shares of common stock, have committed to support the tender offer, the investigation concerns whether the Blyth 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.