Starz (NASDAQ:STRZA) Investor Investigation Over Possible Wrongdoing In Acquisition Announced

If you purchased shares of Starz (NASDAQ:STRZA) and currently hold any of those NASDAQ:STRZA shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Starz
Affected Securities: 
NASDAQ: STRZA

July 1, 2016 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Starz (NASDAQ:STRZA), was announced concerning whether the takeover of Starz by Lionsgate is unfair to NASDAQ:STRZA stockholders.

The investigation by a law firm concerns whether certain directors of Starz breached their fiduciary duties owed to NASDAQ:STRZA investors in connection with the proposed acquisition.

On June 30, 2016, Lionsgate and Starz (NASDAQ: STRZA, STRZB) announced an agreement under which Lionsgate will acquire Starz for a combination of cash and stock totaling $4.4 billion. Under the terms of the agreement, each share of Lionsgate common stock will be reclassified into 0.5 voting and 0.5 newly created non-voting shares. Holders of each share of Starz Series A common stock will receive $18.00 in cash as well as 0.6784 of a share of Lionsgate non-voting stock based on a fixed exchange ratio. Based on Lionsgate's 20-trading day volume weighted average price ("VWAP"), as of June 28, 2016, the offer represents a total value of $32.73 per share to Starz shareholders. Holders of each share of Starz Series B common stock will receive $7.26 in cash and 0.6321 of a share of Lionsgate voting stock and 0.6321 of a share of Lionsgate non-voting stock.

However, given that at least one analyst has set the high target price for NASDAQ:STRZA shares at $47.00 per share, the investigation concerns whether the offer is unfair to NASDAQ:STRZA stockholders. More specifically, the investigation concerns whether the Starz 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.

Shares of Starz (NASDAQ:STRZA) closed on July 1, 2016, at $29.68 per share.