Pactiv Corporation Board Under Investigation

An investigation on behalf of current investors in Pactiv Corporation (NYSE:PTV) concerning shareholder claims over possible breaches of fiduciary duty by the board of directors of Pactiv Corp. was 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 Pactiv Corporation arising out of their attempt to sell Pactiv Corporation (PTV) to Reynolds Group Holdings Limited. Pactiv Corporation, located in Lake Forest, IL, incorporated in 1965, is a producer of consumer and foodservice/food packaging products. Pactiv Corp. reported in 2007 Total Revenue of $3.253billion, in 2008 $3.567billion, and in 2009 $3.36billion.

On Tuesday, August 17, 2010, Pactiv Corporation (NYSE: PTV) announced it has entered into a merger agreement to be acquired by Reynolds Group Holdings Limited in a transaction valued at approximately $6 billion. Under the terms of the agreement, Pactiv shareholders will receive $33.25 in cash for each share of Pactiv common stock held.

According to Pactiv Corp. its board of directors unanimously approved the merger agreement and the offer represents a premium of approximately 39 percent over Pactiv’s closing price of $23.97 on May 14, 2010, the last trading day prior to published reports regarding a potential transaction.

Shares of Pactiv Corporation (PTV) traded after the announcement at $32.58 per share. PTV inclined on takeover rumors by Apollo Global Management LLC on May 17, 2010, to $29.25 per share already. But PTV stock traded over $36 per share in 2007 and at least one analyst has set a price target of $35.00 per share.

The investigation by a law firm “concerns whether the Pactiv Board of Directors breached their fiduciary duties to Pactiv Corporation (NYSE:PTV) 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 Pactiv Corp., and whether Reynolds Group Holdings Limited is underpaying for Pactiv Corporation (PTV), thus unlawfully harming PTV stockholders.”