December 9, 2016 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of FairPoint Communications Inc (NASDAQ:FRP), was announced concerning whether the takeover of FairPoint Communications Inc . by Consolidated Communications Holdings, Inc is unfair to NASDAQ:FRP stockholders.

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

On December 05, 2016, Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) announced it has entered into an agreement to acquire FairPoint Communications Inc (NASDAQ:FRP) in an all-stock merger transaction valued at approximately $1.5 billion, including debt. Under the terms of the agreement, FairPoint Communications Inc (NASDAQ:FRP) shareholders will receive a fixed exchange ratio of 0.7300 shares of Consolidated Communications common stock for each share of FairPoint common stock. Based on a closing price of $28.38 per NASDAQ:CNSL shares investors in NASDAQ:FRP shares will receive a value of approximately $20.71 per share.

However, the investigation concerns whether the offer is unfair to NASDAQ:FRP stockholders. More specifically, the investigation concerns whether the FairPoint Communications 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.

Shares of FairPoint Communications Inc (NASDAQ:FRP) closed on December 9, 2016 at $19.05 per share.