Ryland Group Inc (NYSE:RYL) Investor Investigation Over Potential Wrongdoing In Proposed Acquisition Announced

If you purchased shares of Ryland Group Inc (NYSE:RYL) and currently hold any of those NYSE:RYL shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Ryland Group
Affected Securities: 

June 22, 2015 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Ryland Group Inc (NYSE:RYL), was announced concerning whether the takeover of Ryland Group Inc by Standard Pacific Corp is unfair to (NYSE:RYL stockholders.

The investigation by a law firm concerns whether certain officers and directors of Ryland Group Inc breached their fiduciary duties owed to NYSE:RYL investors in connection with the proposed acquisition.

On June 14, 2015, Standard Pacific Corp. (NYSE: SPF) and The Ryland Group, Inc. (NYSE: RYL) announced that their respective boards of directors have approved a merger agreement pursuant to which Standard Pacific and Ryland will combine in a merger of equals to create a single company that would have an equity market capitalization of approximately $5.2 billion, an enterprise value of approximately $8.2 billion. At the time of the merger, Standard Pacific Corp. will implement a 1 for 5 reverse stock split, so that each 5 shares of Standard Pacific Corp. common stock will be combined into 1 share ofStandard Pacific common stock. After giving effect to the reverse stock split, Ryland Group Inc (NYSE:RYL shareholders will receive 1.01911. shares of Standard Pacific Corp. common stock for each share of Ryland Group Inc (NYSE:RYL) common stock (which would be 5.0957 shares prior to giving effect to the reverse stock split). Based on a closing price of Standard Pacific Corp. (NYSE: SPF) of $8.36 on June 12, 2015, shareholders of Ryland Group Inc (NYSE:RYL) would receive a value of approximately $42.60 per NYSE:RYL shares they own.

However, given that at least one analyst has set the high target price for NYSE:RYL shares at $55.00 per share, the investigation concerns whether the offer is unfair to NYSE:RYL stockholders. More specifically, the investigation concerns whether the Ryland Group 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.

Ryland Group Inc reported that its annual Total Revenue rose from $889.53 million in 2011 to over $2.61 billion in 2014 and that its Net Loss of $50.75 million in 2011 turned into a Net Income of $175.80 million in 2014. Shares of Ryland Group Inc (NYSE:RYL) grew from $10.24 per share in September 2011 to as high as $49.95 per share in May 2013.