Acquisition of Pacer International, Inc. by XPO Logistics, Inc. May Not Be in
Shareholders' Best Interests
SAN DIEGO and DUBLIN, Tenn., Jan. 8, 2014
SAN DIEGO andDUBLIN, Tenn., Jan. 8, 2014 /PRNewswire/ --Shareholder rights
attorneys at Robbins Arroyo LLP are investigating the acquisition of Pacer
International, Inc. (NASDAQ: PACR) by XPO Logistics, Inc. (NYSE: XPO). On
January 6, 2014, the two companies announced the signing of a definitive
agreement pursuant to which XPO Logistics will acquire Pacer for $6.00 per
share in cash and a number of XPO Logistics common stock equal to $3.00 for
each share of Pacer common stock, for a total consideration of $9.00.
Is the Proposed Merger Best for Pacer and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors
at Pacer is undertaking a fair process to obtain maximum value and adequately
compensate Pacer shareholders in the merger.
As an initial matter, the $9.00 consideration represents a one day premium of
8.04% based on Pacer's closing price on January 3, 2014. That one day premium
is substantially below the average one day premium of 48.13% for comparable
transactions in the last three years. Further, the $9.00 merger consideration
is below the $10.00 target price set by an analyst at PI Financial Corp. on
November 19, 2013. In addition, Pacer last traded above the offer price on
December 2, 2013, trading as high as $9.10 and closed above the offer price as
recently as November, 29, 2013, at a price of $9.08.
Further, Pacer recently released its financial results for the third quarter
ended September 20, 2013. For the quarter, the Pacer earnings per share more
than doubled from the same quarter 2012 to $0.08. From that same quarter of
2012, the company also reported an increase in income from operations of $2.7
million to $5.0 million while net income increased $1.7 million to $2.8
million over the same period.
Given these facts, Robbins Arroyo LLP is examining the Pacer board of
directors' decision to sell the company to XPO now rather than allow
shareholders to continue to participate in the company's continued success and
future growth prospects, and whether they are seeking to benefit themselves.
Pacer shareholders have the option to file a class action lawsuit to ensure
the board of directors properly evaluates the proposal to obtain the best
possible price for shareholders and the disclosure of material information.
Equal Energy shareholders interested in information about their rights and
potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
email@example.com, or via the shareholder information form on the
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The law firm represents individual and
institutional investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion of value for
themselves and the companies in which they have invested.
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
SOURCE Robbins Arroyo LLP
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