Imperial Sugar Company (NASDAQ:IPSU) Investor Investigation Over Potential Breaches Of Fiduciary Duties In Connection With The Takeover Offer By Louis Dreyfus Commodities LLC
May 01, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in NASDAQ:IPSU shares was announced concerning whether the offer by Louis Dreyfus Commodities LLC to take over Imperial Sugar Company at $6.35 per share and the takeover process are unfair to investors in NASDAQ:IPSU shares.
The investigations by law firms concern whether certain officers and directors of Imperial Sugar Company breached their fiduciary duties owed to NASDAQ:IPSU investors in connection with the proposed acquisition.
On Tuesday, May 1, 2012, May. 1, 2012-- Imperial Sugar Company (NASDAQ: IPSU) and Louis Dreyfus Commodities LLC announced an agreement under which a subsidiary of Louis Dreyfus Commodities LLC will acquire Imperial Sugar through a cash tender offer and second step merger at $6.35 per share. The all-cash transaction represents a value of approximately $203 million, including the assumption of debt and pension liabilities.
Imperial Sugar Company said the $6.35offer represents a 57% premium to Imperial Sugar’s closing stock price on April 30, 2012, the last trading day prior to today’s announcement, and a 50% premium to Imperial Sugar’s trailing 30-day volume weighted average stock price.
Shares of Imperial Sugar Company (NASDAQ:IPSU) jumped from $4.05 per share on Monday to $6.54 per share during Tuesday, May 1, 2012.
However, NASDAQ:IPSU shares traded as recently as February 13, 2012 as high as $7.03 per share and at least one analyst has set the high target price at $20 per share, thus well above the current offer.
Therefore the investigation for NASDAQ:IPSU investors concerns whether the proposed transaction is unfair to Imperial Sugar stockholders. Specifically, the investigation focuses on whether the Imperial Sugar 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.