Food & Wine
Law Firm Brower Piven Announces Investigation of PAETEC Holding Corp.
STEVENSON, Md.--([ BUSINESS WIRE ])--The law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty to current shareholders of PAETEC Holding Corp. (aPAETECa or aCompanya) (NasdaqGS:PAET) and other violations of state law by the Board of Directors of PAETEC relating to the possible acquisition of the company by Windstream Corp. (aWindstreama) (Nasdaq:WIN). The firma™s investigation seeks to determine whether PAETECa™s Board breached their fiduciary duties by, among other things, failing to maximize shareholder value.
On August 1, 2011, PAETEC and Windstream jointly announced that they have entered into a definitive merger agreement for PAETEC to be acquired by Windstream, with a total transaction value of approximately $2.3 billion. PAETEC shareholders will receive 0.460 shares of Windstream common stock for each PAETEC share owned under the terms of the agreement. The deal values Paetec stock at $5.62 per share. Windstream also will assume or refinance PAETECa™s net debt of approximately $1.4 billion at the time of closing. PAETEC stockholders are expected to own approximately 13 percent of the combined company upon closing of the transaction. However, according to recent company press releases, PAETEC has performed well recently. On May 5, 2011, the Company reported for the first quarter 2011 total revenue of $495.5 million, an increase of 27% or $105.5 million over first quarter 2010 and 39% Adjusted EBITDA growth year over year to $91.4 million. In addition, at least one analyst has set a high target price of $7.00 per share of PAETEC stock.
If you own PAETEC common stock and would like to learn more about the investigation being conducted by Brower Piven, you may e-mail or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. You may contact Brower Piven by email at [ hoffman@browerpiven.com ], by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and other class action cases of over 60 years.