CyberSource Corporation Board Faces Investigation on Behalf of CYBS Investors
Just hours after the takeover announcement investigations on behalf of current investors in CyberSource Corporation (NASDAQ:CYBS) concerning shareholder claims over possible breaches of fiduciary duty by the board of directors of CyberSource Corp. were announced.
The investigation by law firm focuses on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of CyberSource of arising out of their attempt to sell CyberSource Corporation (CYBS) toVisa Inc. CyberSource Corporation, Mountain View, California, is a provider of electronic payment and risk management solutions. Its solutions enable electronic payment processing for Web, call center, and point-of-sale environments. CyberSource partners with and connects to a network of payment processors and other payment service providers to offer merchants a single source solution. CyberSource Corporation reported in 2007 Total Revenue of $117million, in 2008 $229.03million, and in 2009 $265.14million.
On Tuesday, April 21, 2010, CyberSource Corporation (Nasdaq: CYBS) and Visa Inc. announced that they have entered into a definitive agreement for Visa Inc. to purchase CyberSource Corp. at a price of $26.00 per CYBS share, or total consideration of approximately $2.0 billion to be paid with cash on hand. The transaction has been approved by CyberSource boards of directors.
Shares of CyberSource Corporation (CYBS) traded after the takeover news at $25.61 per share, and at $19.75 days before the news.
The investigation by a law firm “concerns whether the CyberSource Corporation Board of Directors breached their fiduciary duties to CyberSource Corporation (CYBS) stockholders by failing to adequately shop the Company prior to entering into the agreement, whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better value of CyberSource Corp. (CYBS), and whether Visa, Inc. is underpaying for CyberSource Corp, thus unlawfully harming CyberSource Corporation (CYBS) stockholders.”