Dresser-Rand Group Inc. (NYSE:DRC) Investor Files Lawsuit Against Acquisition By Siemens

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Company Name(s): 
Case Name: 
Dresser-Rand Deal Case 09/26/2014
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 

September 26, 2014 (Shareholders Foundation) - An investor, who currently holds shares of Dresser-Rand Group Inc. (NYSE:DRC), filed a lawsuit in effort to halt the proposed takeover of Dresser-Rand Group Inc. by Siemens.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:DRC stockholders by agreeing to sell Dresser-Rand Group Inc. too cheaply via an unfair process to Siemens.

On September 21, 2014, Dresser-Rand Group Inc. (NYSE: DRC) announced that it has entered into a merger agreement with Siemens under which Siemens will acquire all of the outstanding shares of Dresser-Rand common stock for $83.00 per share in cash.

However, the plaintiff claims that the offer is too low and undervalues Dresser-Rand Group Inc. Indeed, at least one analyst has set the high target price for NYSE:DRC at $100.00 per share. In addition, Dresser-Rand Group Inc. reported that its annual Total Revenue rose from over $1.95 billion in 2010 to over $3.03 billion in 2013. Shares of Dresser-Rand Group Inc. (NYSE:DRC) grew from $29.58 per share in January 2010 to as high as $75.00 per share on September 17, 2014. Furthermore, the plaintiff alleges that the process is also unfair to NYSE:DRC stockholders.

On September 26, 2014, NYSE:DRC shares closed at $82.61 per share.