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If you purchased shares of Virgin Media Inc. (NASDAQ:VMED) prior to Feb. 5, 2013, and currently hold any of those NASDAQ:VMED shares, 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
Feb. 05, 2013 (Shareholders Foundation) -- An investigation on behalf of investors in Virgin Media Inc. (NASDAQ:VMED) shares was announced concerning whether the offer by Liberty Global, Inc. to acquire Virgin Media Inc. for a value of approximately $47.87 per NASDAQ:VMED share and the takeover process are unfair to investors in NASDAQ:VMED shares.
The investigation by a law firm concerns whether certain officers and directors of Virgin Media Inc. breached their fiduciary duties owed to NASDAQ:VMED investors in connection with the proposed acquisition.
On February 5, 2013: Liberty Global, Inc. (NASDAQ: LBTYA, LBTYB and LBTYK) and Virgin Media Inc. (NASDAQ: VMED; LSE: VMED) announced that they have entered into an agreement, subject to shareholder approvals, pursuant to which Liberty Global will acquire Virgin Media in a stock and cash merger valued at approximately $23.3 billion.
Under the terms of the proposed transaction, Virgin Media shareholders will receive $17.50 in cash, 0.2582 Liberty Global Series A shares and 0.1928 Liberty Global Series C shares for each Virgin Media share that they hold. Based on Liberty Globals Series A share price of $69.46 and Series C share price of $64.50 as of February 4, 2013, this implies a price of $47.87 per Virgin Media share.
However, Virgin Medias financial performance improved lately. For instance, Virgin Media Inc. reported that its Total Revenue rose from over 3.87 billion GBP in 2010 to over 3.99 billion GBP in 2011 and its Net Loss of 141.40 million GBP in 2010 turned into a Net Income of 75.90 million GBP. In addition, shares of Virgin Media Inc. (NASDAQ:VMED) grew from as low as $4.11 per share in March 2009 to as high as slightly above $40 in January 2013.
Therefore, the investigation a law firm concerns whether the proposed transaction is unfair to NASDAQ:VMED stockholders. Specifically, the investigation focuses on whether the Virgin Media 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.
