September 26, 2013 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Eastern Insurance Holdings Inc (NASDAQ:EIHI) shares, was announced concerning whether the takeover of Eastern Insurance Holdings Inc by ProAssurance Corporation for $24.50 per share is unfair to NASDAQ:EIHI stockholders.

The investigation by a law firm concerns whether certain officers and directors of Eastern Insurance Holdings Inc breached their fiduciary duties owed to NASDAQ:EIHI investors in connection with the proposed acquisition.

On Sept. 24, 2013, ProAssurance Corporation (NYSE: PRA) and Eastern Insurance Holdings, Inc. (NASDAQ: EIHI) announced that Eastern Insurance Holdings will merge with a newly formed subsidiary of ProAssurance Corporation in an all-cash transaction that values Eastern Insurance Holdings at $24.50 per share. The transaction, with an aggregate value of approximately $205 million, is expected to close by January 1, 2014.
However, the investigation concerns whether the $24.50-offer is unfair to NASDAQ:EIHI stockholders. More specifically, the investigation concerns whether the Eastern Insurance Holdings 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.

Eastern Insurance Holdings Inc reported that its annual Total Revenue rose from $117.62 million in 2010 to $168.07 million in 2012 and that its Net Loss of $9.19 million in 2010 turned into a Net Income of $10.35 million.

Shares of Eastern Insurance Holdings Inc (NASDAQ:EIHI) grew from $5.726 per share in March 2009 to as high as $21.96 per share in August 2013.

On Sept. 26, 2013, NASDAQ:EIHI shares closed at $24.40 per share.