Met-Pro Corporation (NYSE:MPR) Investor Files Lawsuit Over Alleged Breaches Of Fiduciary Duties In Takeover
July 15, 2013 (Shareholders Foundation) - An investor, who currently holds shares of Met-Pro Corporation (NYSE:MPR), filed a lawsuit in effort to halt the proposed takeover of Met-Pro Corporation by CECO Environmental Corp. for $13.75 per NYSE:MPR share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:MPR stockholders arising out of the attempt to sell the company too cheaply via an unfair process.
On April 22, 2013, CECO Environmental Corp. has announced it has entered into an agreement to acquire Met-Pro Corporation. Pursuant to the terms of the agreement, CECO Environmental Corp will acquire all of the outstanding shares of Met-Pro common stock in a cash and stock transaction valued at a total of approximately $210 million, or $13.75 per share.
However, the plaintiff claims that the offer is too low and undervalues the company. Indeed, Met-Proo’s financial performance improved lately. In fact, it reported that its Total Revenue rose from $80.13 million for the 12 months period that ended on Jan. 31, 2010 to $109.94 million for the 12 months period that ended on Jan 31, 2013 and that its respective Net Income increased from $4.44 million to $8.05 million.
Furthermore, the plaintiff alleges that the proposed transaction is the result of a non-existent sales process in which the board of directors of Met-Pro Corporation negotiated solely with CECO Environmental Corp.
NYSE:MPR shares closed on July 15, 2013, at $13.71 per share.