Affiliated Computer Services, Inc. board under shareholder investigation

If you are currently an investor in shares of Affiliated Computer Services, Inc. (Public, NYSE:ACS), and purchased the shares before September 28, 2009, and / or have additional information relating to the investigation, you should contact the Shareholders Foundation.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Affiliated Computer Services
Affected Securities: 
NYSE: ACS

An investigation on behalf of current investors Affiliated Computer Services, Inc. (Public, NYSE:ACS), who purchased the shares before September 25, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price were announced.

The investigation by a law firm focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Affiliated Computer Services, Inc. (Public, NYSE:ACS) arising out of their attempt to sell Affiliated Computer Services to Xerox Corp. Affiliated Computer Services, Inc. (NYSE: ACS) and Xerox Corporation (NYSE: XRX) announced on September 28, 2009 a definitive agreement for Xerox Corp to acquire Affiliated Computer Services, Inc in a cash and stock transaction valued at $63.11 per share or $6.4 billion as of the closing price of Xerox stock on Sept. 25, 2009. Under the terms of the agreement, ACS shareholders will receive a total of $18.60 per share in cash plus 4.935 Xerox shares for each ACS share they own. According to Affiliated Computer Services the transaction has been approved by the Xerox and ACS boards of directors and ACS special committee.

According to an investigation by a law firm “the transaction appears to be unfair” to current investors of Affiliated Computer Services, Inc. (NYSE: ACS) because the “offer to purchase Affiliated Computer Services, Inc. appears opportunistically timed to take advantage of the current economic downturn”. The investigation “concerns whether the consideration to be paid to ACS shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of ACS” and “whether the directors of ACS, including any special committee members, may have breached their fiduciary duties by not acting in ACS shareholders' best interests in connection with the sale process of ACS”. Another investigation even calls the deal “suspicious because it appears from a review of the Company's financial statements that the inherent value of the Company's stock is greater than $56.60 per share and also because the Company has entered into an agreement that dissuades any other company from making a better offer than Xerox.”

Affiliated Computer Services, Inc., located in Dallas, Texas, is a provider of business process outsourcing and information technology services to commercial and government clients. The Company operates in two segments: commercial and government. The Company services its clients through long-term contracts. Affiliated Computer Services, Inc reported in 2007 Total Revenue of $6.16055billion with a Net Income of $329.01million and in 2008 Total Revenue of $6.52316billion with a Net Income of$349.94million. Shares of Affiliated Computer Services, Inc. (NYSE:ACS) traded at $54.24 per share after the announcement and at about $48 per share shortly before the announcement. Affiliated Computer Services, Inc shares (NYSE:ACS) were down from a 52weekHigh of $55.84 per share, almost $60 per share in 2008, and over $60 per share in 2007.