Investigation Overview
March 8, 2016 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Javelin Mortgage Investment Corp (NYSE:JMI), was announced concerning whether the takeover of Javelin Mortgage Investment Corp. by ARMOUR Residential REIT, Inc for a value of $7.14 per share is unfair to NYSE:JMI stockholders.
The investigation by a law firm concerns whether certain officers and directors of Javelin Mortgage Investment breached their fiduciary duties owed to NYSE:JMI investors in connection with the proposed acquisition.
On March 02, 2016, ARMOUR Residential REIT, Inc. and Javelin Mortgage Investment Corp (NYSE:JMI) announced the signing of a merger agreement, under which ARMOUR Residential REIT, Inc will acquire Javelin Mortgage Investment Corp (NYSE:JMI). Under the terms of the proposed transaction Javelin Mortgage Investment shareholders would receive a value of $7.14 per Javelin Mortgage Investment Corp (NYSE:JMI) share they own.
However, given that at least one analyst has set the high target price for NYSE: JMI shares at $8.50 per share, the investigation concerns whether the offer is unfair to NYSE:JMI stockholders. More specifically, the investigation concerns whether the Javelin Mortgage Investment 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.