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If you purchased shares of Catalyst Health Solutions, Inc. (NASDAQ:CHSI) prior to April 18, 2012 and currently hold any of those NASDAQ:CHSI shares, 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
April 18, 2012 (Shareholders Foundation) -- An investigation for investors in NASDAQ:CHSI shares concerning was announced whether the offer by SXC Health Solutions Corp. to merge with Catalyst Health Solutions, Inc. at a value of $81.02 per share and the takeover process are unfair to investors in Catalyst Health Solutions.
The investigation by a law firm concerns whether certain officers and directors of Catalyst Health Solutions, Inc. breached their fiduciary duties owed to NASDAQ:CHSI investors in connection with the proposed merger.
On Wednesday, April 18, 2012, Catalyst Health Solutions, Inc. and SXC Health Solutions Corp. announced that their Boards of Directors have unanimously approved a definitive merger agreement under which SXC Health Solutions Corp and Catalyst Health Solutions will combine in a cash and stock transaction valued at approximately $4.4 billion.
Under the terms of the agreement, Catalyst Health Solutions shareholders will receive $28.00 in cash and 0.6606 shares of SXC Health Solutions stock for each Catalyst Health Solutions share, which implies a purchase price of $81.02 per Catalyst share. Catalyst Health Solutions, Inc said that the offer represents a premium of approximately 28% based on the closing stock prices of SXC Health Solutions and Catalyst Health Solutions on April 17, 2012.
Following the takeover announcement NASDAQ:CHSI shares jumped from $63.56 per share on Tuesday to $83.98 per share on Wednesday.
However, Catalyst Health Solutions has performed well in the past recent years. In fact, its annual Revenue rose from $2.54billion in 2008 to $5.32billion in 2011 and its Net Income increased from $50.39million in 08 to $66.99million in 2011.
Therefore the investigation for NASDAQ:CHSI investors concerns whether the proposed transaction is unfair to Catalyst Health Solutions stockholders. Specifically, the investigation focuses on whether the Catalyst Health Solutions 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.
