First Data Corporation (NYSE: FDC) Investor Investigation Over Potential Wrongdoing In The Acquisition

Investors who purchased shares of First Data Corporation (NYSE: FDC) and currently hold any of those NYSE: FDC shares have certain options and should contact the Shareholders Foundation, Inc.

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Company Name(s): 
First Data

An investigation on behalf of investors, who currently hold shares of First Data Corporation (NYSE: FDC), was announced concerning whether the takeover of First Data by Fiserv is unfair to NYSE: FDC stockholders.

The investigation by a law firm concerns whether certain officers and directors of First Data Corporation breached their fiduciary duties owed to NYSE: FDC investors in connection with the proposed acquisition.

First Data Corporation provides electronic commerce solutions for merchants, financial institutions, and card issuers worldwide.

On January 16, 2019, Fiserv (NASDAQ: FISV) and First Data Corporation (NYSE: FDC) announced that a definitive merger agreement under which Fiserv will acquire First Data in an all-stock transaction. Under the terms of the agreement, First Data shareholders will receive a fixed exchange ratio of 0.303 Fiserv shares for each share of First Data common stock they own, for an equity value of $22 billion. This represents $22.74 per NYSE: FDC shares based on closing prices as of January 15, 2019.

However, given that at least one analyst has set the high target price for NYSE: FDC shares at $35.00 per share and given that NYSE: FDC shares traded as recently as September 2018 in the open market as high as $26.25 per share, the investigation concerns whether the offer is unfair to NYSE: FDC stockholders.

In addition, given that an affiliate of Kohlberg Kravis Roberts & Co. L.P., New Omaha Holdings L.P.,which controls approximately 39% of the outstanding First Data common stock and 86% of the voting rights of First Data, has already entered into a voting agreement in support of the transaction, the investigation concerns whether the First Data Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

First Data Corporation reported that its annual Total Revenue rose from over $7.83 billion in 2016 to over $8.12 billion in 2017 and that its Net INcome increased from $420 million in 2016 to over $1.46 billion in 2017.