RailAmerica, Inc. (NYSE:RA) Investor Investigation Over Potential Takeover

If you purchased shares of RailAmerica, Inc. (NYSE:RA) shares prior to the announcement, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
RailAmerica
Affected Securities: 
NYSE: RA

May 30, 2012 (Shareholders Foundation) -- Following the announcement by RailAmerica, Inc. (NYSE:RA that it is considering strategic alternatives, including a potential sale of the company, prompted an investigation on behalf of investors of RailAmerica, Inc. (NYSE:RA) concerning whether a potential takeover would be unfair for NYSE:RA stockholders and whether certain RailAmerica directors breach their fiduciary duties in the event of an acquisition.

The investigation by a law firm is at a preliminary stage and monitors a possible takeover. It concerns whether RailAmerica, certain of its officers and directors, and/or others breach their fiduciary duties owed to RailAmerica, Inc. (NYSE:RA) investors in the event of a takeover.

On May, 22, 2012, RailAmerica, Inc. (NYSE: RA) stated that its Board of Directors is considering strategic alternatives, which may include a sale of the Company and that in connection with its evaluation, RailAmerica, Inc. is engaged in preliminary discussions with third parties regarding a potential sale of RailAmerica, Inc.

However, RailAmerica’s financial performance improved over the past three years. Its annual Revenue increased from $425.77million in 2009 to $551.12million in 2011 and its Net Income rose over the respective time periods from $15.84million to $36.87million.

Shares of RailAmerica, Inc. (NYSE:RA) rose from as low as $9.24 per share in October 2010 to over $24 per share on May 23, 2012.

Therefore the investigation focuses whether the RailAmerica board of directors will undertake an adequate a fair sales process to obtain fair consideration for all shareholders of RailAmerica, Inc. (NYSE:RA) and will breach their fiduciary duties to NYSE:RA shareholder by failing to adequately shop the Company before entering into any transaction.