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COMSYS IT Partners, Inc. Investor Alert: Board Under Investigation

If you are currently an investor in shares of COMSYS IT Partners, Inc. (NASDAQ:CITP), and purchased the shares before February 02, 2010, you have certain options and you should contact the Shareholders Foundation.

You may contact us by using this form, or by sending an email to mail@shareholdersfoundation.com, or calling us at (858) 779-1554.

Company Name(s): 
COMSYS IT Partners
Affected Securities: 
NASDAQ: CITP

An investigation on behalf of current investors in COMSYS IT Partners, Inc. (Public, NASDAQ:CITP), who purchased CITP shares before February 02, 2010, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was 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 COMSYS IT Partners arising out of their attempt to sell COMSYS IT Partners, Inc. to Manpower Inc. (NYSE: MAN). On February 02, 2010 Manpower Inc. today it has entered into an agreement, which has been approved by the boards of directors of both companies, to acquire COMSYS IT Partners, Inc. (Nasdaq: CITP) in a $431 million transaction. According to Manpower, Manpower has agreed to acquire all of the outstanding shares of COMSYS common stock pursuant to an exchange offer in which COMSYS stockholders can elect to receive for each of their COMSYS shares either $17.65 per share in cash or a fraction of a share of Manpower common stock equal to $17.65 divided by the average trading price of Manpower common stock during the ten trading days ending on and including the second trading day prior to the closing of the exchange offer, subject to a requirement that no more than 50% of the aggregate consideration in either the exchange offer or the subsequent merger will be cash or stock (subject to certain adjustments).

But according to one investigation by a law firm “the transaction appears to be unfair” to current investors of COMSYS IT Partners, Inc. (Public, NASDAQ:CITP) because the “offer to purchase COMSYS IT Partners, Inc. (CITP) appears opportunistically timed to take advantage of the current economic downturn” and is “grossly unfair, inadequate, and substantially below the fair or inherent value of CITP”.

COMSYS IT Partners, Inc. reported in 2007 Total Revenue of $743.26million with a Net Income of $33.35million and in 2008 Total Revenue of $727.11million with a Net Loss of $65.19million. Shares of COMSYS IT Partners, Inc. (CITP) traded before the announcement at about $14.50 per share, and at $17.45 per share after the news. CITP shares reached almost $25 per share in 2007. During the dotcom bubble CITP.

The investigation “concerns whether the COMSYS IT Partners, Inc. Board of Directors breached their fiduciary duties to COMSYS IT Partners, Inc. (NASDAQ:CITP) stockholders by failing to adequately shop the Company before entering into this transaction and whether Manpower Inc. is underpaying for COMSYS IT Partners, Inc. (Public, NASDAQ:CITP)
shares, thus unlawfully harming CITP stockholders.”

COMSYS IT Partners, Inc., located in Houston, Texas, is an information technology (IT) services company that provides a range of specialized IT staffing and project implementation services, including Website development and integration, application programming and development, client/server development, systems software architecture and design, systems engineering and systems integration.

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