June 8, 2016 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Electro Rent Corporation (NASDAQ:ELRC), was announced concerning whether the takeover of Electro Rent Corporation . by Platinum Equity for $13.12 per share is unfair to NASDAQ:ELRC stockholders.

The investigation by a law firm concerns whether certain officers and directors of Electro Rent Corporation breached their fiduciary duties owed to NASDAQ:ELRC investors in connection with the proposed acquisition.

On May 31, 2016, Platinum Equity and Electro Rent Corporation announced that they have entered into an agreement under which Electro Rent Corporation (NASDAQ:ELRC) would be acquired by Platinum Equity for approximately $323.4 million.
Under the agreement, Platinum Equity would acquire all of Electro Rent Corporation common stock. Electro Rent Corporation (NASDAQ:ELRC) stockholders will receive $13.12 per share.

However, given that Electro Rent Chairman Daniel Greenberg and a member of his immediate family, who collectively own approximately 29% of the companys outstanding shares of common stock, have already entered into voting agreements in support of the sale and have granted an affiliate of Platinum Equity irrevocable proxies to execute those agreements, the investigation concerns whether the offer is unfair to Electro Rent Corporation (NASDAQ:ELRC stockholders. More specifically, the investigation concerns whether the Electro Rent Corporation (NASDAQ:ELRC 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.