San Diego, Feb. 13, 2012 (Shareholders Foundation) -- The announcement by General Bearing Corporation that agreed to by acquired by SKF for $28 per GNRL share prompted an investigation for investors General Bearing Corp. (PINK:GNRL) shares concerning whether the offer to acquire General Bearing Corp. and the buyout process are unfair to investors in General Bearing (GNRL) shares.

The investigations by law firms concern whether General Bearing Corp, certain officers and directors, and/or others breached their fiduciary duties owed to General Bearing Corporation (GNRL) investors in connection with the proposed acquisition.

On Monday, February 13, 2012, General Bearing Corporation (OTC:GNRL.PK) announced the signing of an agreement whereby SKF, a Swedish company, will acquire General Bearing Corp. and its subsidiaries, including the interests in its four manufacturing sites in China.
Under the terms of the proposed transaction the purchase price of approximately $28 per share, all cash, represents an aggregate enterprise value of $125,000,000, net of contractual adjustments and the satisfaction of certain obligations and liabilities of the company, and is subject to adjustments that could arise from escrow arrangements related to both working capital and indemnifications.
Shares of General Bearing Corp. (Public, PINK:GNRL) jumped from $24 per share on Friday to $27.42 per share on Monday, February 13, 2012.

However, General Bearing Corp. has performed well for its investors in recent years. Its Total Revenue rose from $102.35million for a 52weeks period ending on Jan 2, 2010 to $157.72million for a 52weeks period ending on Jan 1, 2011 and its Net income for those time periods increased from $1.43million to $3.92million.

Therefore the investigation for GNRL investors concerns whether the General Bearing Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to General Bearing Corporation (GNRL) shareholders by failing to adequately shop the Company before entering into this transaction. A potential securities class action lawsuit would seek to maximize the amount of money and information General Bearing Corp. (GNRL) shareholders would receive in a buyout, so the law firm.