Press release from PR Newswire
Block & Leviton LLP Investigates CapitalSource Inc. for Possible Breaches of Fiduciary Duty in Connection with Its Acquisition by PacWest Bancorp.
Monday, July 22, 2013
Block & Leviton LLP Investigates CapitalSource Inc. for Possible Breaches of Fiduciary Duty in Connection with Its Acquisition by PacWest Bancorp.22:41 EDT Monday, July 22, 2013
BOSTON, July 22, 2013 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duty by the Board of Directors of CapitalSource Inc. ("CapitalSource" or the "Company") (NYSE: CSE) concerning the proposed acquisition of the Company by PacWest Bancorp ("PacWest") (NASDAQ: PACW) in a cash and stock transaction.
Under the terms of the proposed transaction, CapitalSource shareholders will receive $2.47 in cash and 0.2837 shares of PacWest common stock for each share of the Company held. Based on the July 22, 2013, closing price of both stocks, the deal values CapitalSource at $11.68 per share, representing a premium of less than twenty percent. Total value for the transaction is estimated at approximately $2.3 billion. James J. Pieczynski, CEO of CapitalSource, will become President of the new CapitalSource division of PacWest, and other top level executives have secured continued employment with the newly combined entity. The Company's share price has increased more than 66% in the past year, and the stock was likely to continue its growth well beyond the offer price. The paltry premium appears to provide insufficient recognition of the stock's stunning growth potential.
Block & Leviton's investigation seeks to determine, among other things, whether CapitalSource's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by PacWest and the overall fairness of the process by which the CapitalSource Directors considered and approved the transaction.
If you are an CapitalSource shareholder and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte, at (617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years. This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP