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If you are a current investor in Prestige Brands Holdings, Inc. (NYSE:PBH) and purchased your NYSE:PBH shares prior to the announcement, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
San Diego, Feb. 21, 2012 (Shareholders Foundation) -- The announcement by Genomma Lab Internacional, S.A.B. de C.V.that it intends to acquire Prestige Brands Holdings, Inc. for $16.60 per NYSE:PBH share prompted an investigation for investors Prestige Brands Holdings, Inc. (NYSE:PBH) shares concerning whether the offer to acquire Prestige Brands Holdings and the buyout process are unfair to investors in NYSE:PBH) shares.
The investigation by a law firm concerns whether Prestige Brands Holdings, certain officers and directors, and/or others breached their fiduciary duties owed to Prestige Brands Holdings (NYSE:PBH) investors in connection with the proposed acquisition.
On February, 21, 2012, Prestige Brands Holdings, Inc. (NYSE PBH) confirmed that it is in receipt of a non-binding letter from Genomma Lab Internacional, S.A.B. de C.V. proposing to acquire all outstanding common shares of Prestige Brands at a price of $16.60 per share in cash.
Shares of Prestige Brands Holdings, Inc. (NYSE:PBH) jumped from $13.52 on Friday to as high as $16.76 on Tuesday, February 21, 2012, thus slightly above the current offer of $16.60 per share. Additionally, at least one analyst has set the high target price for NYSE:PBH stocks at $20 per share, also well above the current offer.
Therefore the investigation for NYSE:PBH investors concerns whether the Prestige Brands Board of Directors undertakes an adequate sales process and in particular breach their fiduciary duties to Prestige Brands Holdings, Inc. (NYSE:PBH) shareholders by failing to adequately shop the Company before entering into this transaction.
In addition to the analysts target price Prestige Brands Holdings performance improved over the past recent years. Its Total Revenue rose from $294.35million for a 12months period ending on March 31, 2009 to $336.51million for a 12months period ending on March 31, 2011 and its Net loss of $186.78million for a 12months period ending on March 31, 2009 turned into a Net Income of $29.22million for a 12months period ending on March 31, 2011.
Thus a potential securities class action lawsuit would seek to maximize the amount of money and information Prestige Brands (NYSE:PBH) shareholders would receive in a buyout, so the law firm.
