Bankrate, Inc. Acquisition subject of Investor Investigation alleging unfair Takeover

After Apax Partners today announced to acquire Bankrate for $571million several Investigations on behalf of current investors of Bankrate, Inc. (Public, NASDAQ:RATE), who purchased the shares before July 22, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price were immediately announced.

The investigations by law firms focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Bankrate, Inc. (NASDAQ:RATE) arising out of their attempt to sell Bankrate Inc. to Apax Partners. Bankrate, Inc. announced on July 22, 2009 that it has entered into a definitive agreement to be acquired and taken private by funds advised by Apax Partners, a global private equity firm with over $35 billion in funds under advice and significant expertise in financial services and media. Bankrate announced that “under the terms of the agreement, Apax will commence a tender offer to acquire all of the outstanding common stock of Bankrate, for $28.50 per share in cash, followed by a merger to acquire all remaining outstanding Bankrate shares at the same price paid in the tender offer”. According to Bankrate, the “offer price represents a premium of 15.8% over yesterday's closing stock price and 18.2% over the average closing price for the previous ten trading days”. But according to one investigation “the transaction appears to be unfair” to current investors of Bankrate, Inc. (NASDAQ:RATE) “in part, given that Bankrate stock was trading at over $31.00 a share as recently as June 2009 and was trading at over $39.00 a share in January 2009”. Shares of Bankrate, Inc. (NASDAQ:RATE) traded at $29 per share after the announcement and therefore already above the offered price. RATE shares reached a 52weekHigh of $41.92 per share and traded at $56.50 per share in 2008.

Bankrate, Inc., located in North Palm Beach, Florida, owns and operates an Internet-based consumer banking and personal finance network. The Company's flagship Website, Bankrate.com, collates data and information on more than 300 financial products and fees, including mortgages, credit cards, automobile loans, money market accounts, certificates of deposit, checking and automated teller machine (ATM) fees, home equity loans, and online banking fees. Bankrate reported in 2007 Total Revenue of $95.59million with a Net Income of $20.05million and in 2008 Total Revenue of $166.85million with a Net Income of $19.62million.