Tower Financial Corporation (NASDAQ:TOFC) Investor Investigation Over Potential Wrongdoing In Acquisition

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

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Company Name(s): 
Tower Financial
Affected Securities: 

September 17, 2013 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Tower Financial Corporation (NASDAQ:TOFC) shares, was announced concerning whether the takeover of Tower Financial Corporation by Old National Bancorp for a value of approximately $21.47 per NASDAQ: TOFC is unfair to NASDAQ:TOFC stockholders.

The investigation by a law firm concerns whether certain officers and directors of Tower Financial Corporation breached their fiduciary duties owed to NASDAQ:TOFC investors in connection with the proposed acquisition.

On September 10, 2103, Old National Bancorp (NASDAQ: ONB) and Tower Financial Corporation (NASDAQ: TOFC) announced the execution of an agreement under which Old National will acquire Tower Financial Corporation through a stock and cash merger. Under the terms of the merger agreement shareholders of Tower Financial Corporation will receive 1.20 shares of Old National Bancorp common stock and $6.75 in cash (fixed) for each share of Tower Financial common stock. Based upon the September 5, 2013, closing price of $13.52 per share of Old National common stock, the transaction is valued at approximately $107.7 million or $21.47 per NASDAQ: TOFC shares.

However, the investigation concerns whether the offer is unfair to NASDAQ:TOFC stockholders. More specifically, the investigation concerns whether the Tower Financial 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.

Tower Financial Corporation (NASDAQ:TOFC) reported that its Net Loss in 2009 turned into a Net Income of $6.62 million in 2011, respectively $5.74 million in 2012.Shares of Tower Financial Corporation (NASDAQ:TOFC) grew from $4.42 per share in November 2009 to as high as $16.10 per share on Sept. 4, 2013.

On September 17, 2013, NASDAQ:TOFC shares closed at $22.85 per share.