Following the announcement by Central Vermont Public Service Corp that it agreed to a takeover of Central Vermont Public Service by Fortis Inc an investigation on behalf of investors of Central Vermont Public Service Corp (NYSE:CV) was announced concerning whether the proposed acquisition is unfair to NYSE: CV stockholders and whether certain directors and officers breached their fiduciary duties.

The investigation by a law firm concerns whether certain directors and officers at Central Vermont Public Service Corp. or others breached their fiduciary duties in connection the proposed takeover.

On Monday, May 30, 2011, Central Vermont Public Service (NYSE - CV) and Fortis Inc. (TSX - FTS) announced that they have entered into an agreement for the acquisition by Fortis Inc. of all of the outstanding common shares (CV) of Central Vermont Public Service for an aggregate purchase price of approximately $700 million (U.S.), including the assumption of approximately $230 million (U.S.) of debt.

Under the terms of the proposed transaction Central Vermont Public Service shareholders will receive $35.10 per share in cash.
Central Vermont Public Service said the offer represents a 44 percent premium over the CVPS common share closing price of $24.32 on Friday, May 27.

Following the announcement NYSE CV shares increased from $24.30 on Friday to $34.50 on the next trading day on Tuesday.

However, Central Vermont Public Service Corp has performed well for its investors in the past. Its past four annual 12months Total Revenue have been relatively consistent within a range between $329.11million and $342.16million. In fact Central Vermont Public Services annual Revenue rose from $329.11million in 07 to $341.93million in 2010. Its Net Income surged within the same time frame from $15.44million in 2007 to $20.59million in 2010. For the first quarter in 2011 Central Vermont Public Service Corp reported a quartly Total Revenue of $97.08million for the first quarter in 2011 compared to $91.01million for the first quarter in 2010. Its Net Income for the frist quarter 2011 more than doubled from the first quarter in 2010. Central Vermont Public Service Corp reported $8.43million for the first quarter in 2011 compared to $4.20million for the first quarter in 2010.


Therefore the investigation monitors the proposed transaction and concerns whether the Central Vermont Public Service Board of Directors undertook an adequate and fair sales process to obtain fair and maximized consideration for all shareholders of Central Vermont Public Service Corp (NYSE:CV and breached their fiduciary duties to Central Vermont Public Service (CV) shareholder by failing to adequately shop the Company before entering into the transaction.

The investigation concerns also whether Fortis Inc would underpay for NYSE:CV shares, thus unlawfully harming NYSE CV stockholders.

A potential securities class action lawsuit would seek to maximize the amount of money and information NYSE:CV shareholders would receive in a buyout, so the law firm.