SureWest Communications (NASDAQ:SURW) Investors File Lawsuit In Effort To Block Takeover

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Company Name(s): 
SureWest Communications
Case Name: 
SureWest Communications Deal Case 02/24/2012
Affected Securities
NASDAQ: SURW
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
02/24/2012
Summary: 

San Diego, March 15, 2012 (Shareholders Foundation) -- At least two investors in NASDAQ:SURW shares filed lawsuits against the board of directors in effort to stop the proposed takeover of SureWest Communications by Consolidated Communications Holdings for $23 per NASDAQ:SURW.

According to the plaintiffs the defendants breached their fiduciary duties owed to investors in SureWest Communications (NASDAQ:SURW) arising out of the attempt to sell SureWest Communications at an unfair price and at an unfair process.

On February 6, 2012, SureWest Communications (Nasdaq: SURW) and Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) announced that they hae entered into an agreement under which Consolidated Communications Holdings will acquire all the outstanding shares of SureWest Communications in a cash and stock transaction valued at $23.00 per share, or a total of approximately $340.9 million, exclusive of debt.

SureWest Communications said the offer represents a 47% premium to SureWest's stock price as of the close on February 3, 2012.

However, the plaintiff alleges that the $23offer is unfair to NASDAQ:SURW stockholders and undervalues the company. Indeed, SureWest Communications’ performance for its investors increased over the past years. SureWest Communications’ annual Revenue rose from $174.26million in 2007 to $243,50million in 2010 and its third quarter Revenue in 2011 increased from $61.12million in 2010 to $63.00million.