Investigation Overview
November 1, 2013 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Blyth, Inc. (NYSE:BTH) shares, was announced concerning whether the takeover of Blyth, Inc. by CVSL, Inc for $16.75per 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 October 29, 2013, Blyth, Inc. confirmed that it has received an unsolicited proposal from CVSL, Inc. to acquire, subject to conditions, all of the public common shares of Blyth for a per share consideration of $16.75, or approximately $269 million payable in CVSL shares or cash.
However, given that shares of Blyth, Inc. traded in 2012 as high as $44.00 per share and that analysts have set the target price for NYSE:BTH shares at $40.00 per share, the investigation concerns whether the 16.75-offer is unfair to NYSE:BTH stockholders. More specifically, 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.
Blyth, Inc. reported that its annual Total Revenue rose from $827.61 million in 2011 to over $1.17 billion in 2012 and that its Net Income increased from $16.23 million to $44.00 million.
On Nov. 1, 2013, NYSE:BTH shares closed at $12.71 per share.