NEW YORK, Dec. 15, 2016 /PRNewswire/ -- WeissLaw LLP is
investigating possible breaches of fiduciary duty and other
violations of law by the Board of Directors of FairPoint
Communications, Inc. ("FRP" or the "Company") in connection with
the proposed acquisition of the Company by Consolidated
Communications Holdings, Inc. ("CNSL"). On December 5, 2016, FRP announced it had reached a
definitive agreement for CNSL to acquire all outstanding shares of
FRP in an all-stock transaction valued at $1.5 billion, inclusive of debt. Under the
terms of the agreement, FRP shareholders will receive 0.73 of a
CNSL share; representing consideration of $19.86, based on CNSL's December 5 closing price.
WeissLaw is investigating whether FRP's Board acted to maximize
shareholder value prior to entering into the agreement.
Notably, at least one analyst set a target price of $20.00. Moreover, according to Bob Udell, CNSL's President and CEO, the
transaction "significantly expands [CNSL's] broadband reach and
scale, and is cash flow accretive upon close." Further,
the acquisition of the Company increases CNSL's market share,
adding the 17 states in which FRP operates and more than 21,000
miles of fiber routes; making CNSL the ninth-largest fiber provider
in the U.S., with 35,100 miles of fiber across 24 states.
Finally, upon completion of the transaction, FRP shareholders will
own a meagre 28.7% of the combined company.
Given these facts, WeissLaw is investigating the Board of
Directors' decision to sell FRP and whether FRP shareholders will
obtain their fair and proportionate share of the Company's
continued success and future growth prospects. If you own FRP
shares and would like more information about your rights or our
investigation, or if you have information to share with us, please
contact Joshua Rubin by telephone at
(888) 593-4771 or by email at
stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com or fill out the form
on our website,
http://www.weisslawllp.com/fairpoint-communications-inc/
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SOURCE WeissLaw LLP
