-
If you are a current investor in Center Financial Corporation (NASDAQ:CLFC) and purchased your CLFC shares prior to the announcement, and/or if you have any information relating the investigation, 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 investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
An investigation concerning whether the offer to take over Center Financial Corp. a value of $7.16 per CLFC share by Nara Bancorp, Inc and sale process are unfair to investors of Center Financial Corporation (NASDAQ:CLFC) was announced.
The investigation by a law firm concerns whether Nara Bancorp, Inc, i Center Financial Corporation and certain of its officers and directors breached their fiduciary duties owed investors in Center Financial Corporation (NASDAQ:CLFC) in connection with the proposed takeover.
On Thursday, Dec. 9, 2010, Center Financial Corporation (NASDAQ: CLFC) and Nara Bancorp, Inc. (NASDAQ: NARA) announced that they have entered into an agreement under which Center Financial Corp. shareholders will receive a fixed ratio of 0.7804 of a share of Nara Bancorp common stock in exchange for each share of Center Financial common stock they own in a stock-for-stock transaction valued at approximately $285.7 million.
Based on the closing price on December 8, 2010, this represents $7.16 per Center Financial share.
Shares of Center Financial Corporation (NASDAQ:CLFC) increased on Friday to over $7 per share and continued to increase on Monday after the announcement to $7.85 per share.
Therefore the investigation by a law firm concerns whether the offer undervalues Center Financial Corp. and the sale process is unfair to the shareholders of Center Financial Corporation (NASDAQ:CLFC). A potential class action lawsuit would seek to maximize the amount of money and information Center Financial Corporation (NASDAQ:CLFC) shareholders receive in the buyout, so the law firm. During 2007 Center Financial Corp. (NASDAQ: CLFC) shares traded as high as over $23 per share and during 2008 at over $14 per share. In addition at least two analysts have set a price target of $9.00 per share for Center Financial.
Therefore the investigation concerns whether the Center Financial Corp. Board of Directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of Center Financial Corporation (NASDAQ:CLFC) and breached their fiduciary duties to Center Financial (CLFC) shareholder by failing to adequately shop the Company before entering into the transaction.
