Gen-Probe Incorporated Investor Investigation Over Takeover Rumors

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After a media report said that there is only one potential acquirer for Gen Probe Inc remaining, which may not go through with a deal to acquire Gen-Probe, an investigation on behalf of investors of Gen-Probe Incorporated (NASDAQ:GPRO) over possible breaches of fiduciary duties was announced.

The investigation by a law firm is at a preliminary stage and monitors the takeover rumors. It concerns whether Gen-Probe Inc., certain of its officers and directors, and/or others breach their fiduciary duties owed to Gen-Probe Incorporated (NASDAQ:GPRO) investors in connection with the takeover rumors or in the event of a takeover.

On June 6, 2011 a media report said that only one potential acquirer remains to acquire Gen-Probe Inc and that potential acquirer may not go through with the deal.

Following the media report shares of NASDAQ:GPRO fell from almost $82 per share on Friday to slightly above $70 per share on Monday.

However, Gen-Probe Incorporated has performed well in the past for its investors. Gen-Probe’s 12months Total Revenue rose from $403.01million to $543.33million in 2010. Its Net Income increased within the same time frame from $86.14million to $106.94million. Gen-Probe Inc. reported for the first quarter in 2011 a quarterly Revenue of $143.04million compared to a quarterly Revenue of $135.42million for the first quarter in 2010.

In fact shares of Gen-Probe Incorporated (NASDAQ: GPRO) increased from as low as $31.88 per share in November 08 to almost $70 in mid April 2011 before a media report from April 29, 2011 that cited people with knowledge that Gen-Probe Inc hired Morgan Stanley to seek a buyer for the company. Following that report GPRO stock jumped from $70.16 on April 27 to $83.95 on May 3, 2011 and increased to as high as $$86.66 per share on May 18.

The investigation by a law firm questions whether a potential sale process and the potential price would be unfair to the shareholders of Gen-Probe Incorporated (NASDAQ:GPRO). The investigation focuses whether the Gen-Probe board of directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of Gen-Probe Incorporated (NASDAQ:GPRO) and breached their fiduciary duties to Gen-Probe Inc. (GPRO) shareholder by failing to adequately shop the Company. In addition the investigation seeks also to determine if any officer, director or any insiders violated any laws in connection with the takeover rumors. The investigation concerns also whether the acquirer would underpay for NASDAQ:GPRO shares, thus unlawfully harming Gen-Probe (NASDAQ:GPRO) investors. A potential class action lawsuit would seek to maximize the amount of money and information Gen-Probe Inc (GPRO) shareholders would receive in a buyout, so the law firm.