Bucyrus International, Inc. Investor Investigation Over Possible Breach of Fiduciary Duty

If you are a current investor in Bucyrus International, Inc. (NASDAQ:BUCY) and purchased your BUCY shares prior to the takeover announcement, and/or have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

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): 
Bucyrus International
Affected Securities: 

An investigation on behalf of investors of Bucyrus International, Inc. (NASDAQ:BUCY) concerning whether the offered takeover price by Caterpillar Inc and sale process are unfair to BUCY investors and constitute breaches of fiduciary duties was announced.

The investigation by a law firm concerns whether Caterpillar Inc, Bucyrus International, and certain of its officers and directors breached their fiduciary duties owed to Bucyrus International, Inc. (NASDAQ:BUCY) investors in connection with the proposed takeover.

On Monday, November 15, 2010, Bucyrus International, Inc. and Caterpillar Inc (NYSE: CAT) announced that they have entered into an agreement under which Caterpillar will acquire Bucyrus International in a transaction valued at approximately $8.6 billion (including net debt). Under the terms of the transaction, which has been approved by the boards of directors of both companies, Bucyrus shareholders will receive $92 per share, $7.6 billion in aggregate consisting of all cash. Bucyrus International, Inc said the transaction represents an implied premium of 32 percent to Bucyrus’ share price as of November 12, 2010.

Shares of Bucyrus International, Inc. (NASDAQ: BUCY) traded at roughly $72 per share days before the takeover news. On Monday, Nov. 15, BUCY shares jumped in response to the announcement nearly 30% to $90 per share.

But the investigations by a law firms concerns whether the offered price undervalues Bucyrus International, Inc. and the sale process is unfair to the shareholders of Bucyrus International, Inc. (NASDAQ:BUCY).

At least one analyst has projected that Bucyrus’ true value is at least $95 per share.

Bucyrus International’s 12 month Total Revenue more than tripled between 2006 and 2009. In 2006 Bucyrus International, Inc. reported a 12month Total Revenue of $738.05million and in 2009 $2,651million. Its Net Income over the same time frame increased by more than 450%. While Bucyrus International, Inc. reported in 2006 $70.34million Net Income, it was able to report a Net Income of $312.70million in 2009. For the first three quarters in 2010 Bucyrus International, Inc. reported quarterly Total Revenue of $607.52million, $868.67million, and $937.16million, thus a combined 9month Total Revenue of $2,413.35million. For the first three quarters Bucyrus International, Inc. reported a combined 9month Net Income of 185.79million.

Therefore the investigations concern whether the Bucyrus Intl. board of directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of Bucyrus International, Inc. (NASDAQ:BUCY) and breached their fiduciary duties to Bucyrus International (BUCY) shareholder by failing to adequately shop the Company before entering into the transaction.