Trade Street Residential Inc (NASDAQ:TSRE) Investor Investigation Over Potential Wrongdoing In Acquisition Announced

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

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Company Name(s): 
Trade Street Residential
Affected Securities: 

May 18, 2015 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Trade Street Residential Inc (NASDAQ:TSRE), was announced concerning whether the takeover of Trade Street Residential Inc by Independence Realty Trust, Inc for a value of $7.60 per share is unfair to NASDAQ:TSRE stockholders.

The investigation by a law firm concerns whether certain officers and directors of Trade Street Residential Inc breached their fiduciary duties owed to NASDAQ:TSRE investors in connection with the proposed acquisition.

On May 11, 2015, Independence Realty Trust, Inc. (NYSE MKT:IRT) and Trade Street Residential Inc (NASDAQ:TSRE) announced that Independence Realty Trust and Independence Realty Trust have signed a merger agreement pursuant to which Independence Realty Trust, Inc has agreed to acquire all of the outstanding common stock of Trade Street Residential Inc (NASDAQ:TSRE) for a mix of cash and stock. Under the terms of the merger agreement, Independence Realty Trust, Inc will pay each Trade Street Residential Inc (NASDAQ:TSRE) stockholder $3.80 in cash and 0.4108 of newly issued IRT common stock, subject to adjustment as described below. Based on the agreed upon "Reference Price" of $9.25 for Independence Realty Trust, Inc shares, this offer represents the equivalent of $7.60 in value to Trade Street Residential Inc (NASDAQ:TSRE) stockholders.

However, given that at least one analyst has set the high target price for NASDAQ:TSRE shares at $9.50 per share and that NASDAQ:TSRE shares traded as recently as $8.13 per share in December 2014, the investigation concerns whether the offer is unfair to NASDAQ:TSRE stockholders.

In addition, given that in connection with the merger agreement, certain affiliates of Senator Investment Group LP and Monarch Alternative Capital LP, which own approximately 25.4% and 23.0%, respectively, of Trade Street Residential Inc’s common stock, have already entered into voting agreements pursuant to which they have committed to support the transaction, the investigation concerns whether the Trade Street Residential 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.