Stillwater Mining Company (NYSE:SWC) Investor Lawsuit Against Acquisition By Sibanye Gold Limited Filed

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Company Name(s): 
Stillwater Mining
Case Name: 
Stillwater Mining Deal Case 02/08/2017
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: SWC
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
02/08/2017
Summary: 

February 8, 2017 (Shareholders Foundation) - An investor, who currently holds shares of Stillwater Mining Company (NYSE:SWC), filed a lawsuit in effort to halt the proposed takeover of Stillwater Mining Company by Sibanye Gold Limited.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:SWC stockholders by agreeing to sell Stillwater Mining Company Inc too cheaply via an unfair process to Sibanye Gold Limited.

On December 9, 2016, Stillwater Mining Company (NYSE:SWC) announced that it has entered into an agreement with Sibanye Gold Limited, under which Sibanye will acquire Stillwater for $18.00 per share in cash representing an aggregate enterprise value of $2.2 billion.

However, plaintiff claims that the proposed consideration NYSE:SWC shareholders will receive is grossly inadequate and undervalues Stillwater Mining Company. Indeed, at least one analyst has set the high target price for NYSE:SWC shares at $21 per share. In addition, the plaintiff alleges that the process is also unfair NYSE:SWC stockholders. The plaintiff claims that certain defendants locked up the Proposed Transaction and have precluded other bidders from making successful competing offers for the company by agreeing to preclusive deal protection devices, such as no solicitation, matching rights, and a $16.5 termination fee provision.