SAN DIEGO, CA– The Shareholders Foundation, Inc. announces that an investor filed a lawsuit in State Court for current stockholders of Winn-Dixie Stores, Inc. (WINN) in effort to stop the proposed takeover of Winn-Dixie Stores by BI-LO, LLC for $9.50 per share.
On December 19, 2011, Winn-Dixie announced that it had entered into an agreement pursuant to which it will be acquired by BI-LO. Under the terms of proposed transaction, Winn-Dixie shareholders will receive $9.50 in cash per Winn-Dixie common stock.
However, the plaintiff alleges that members of the board of directors of Winn Dixie breached their fiduciary duties arising out of their attempt to sell the grocery chain at an unfair price via an unfair process. The plaintiff says that given the challenging economic environment, Winn-Dixie common stock has been trading at a huge discount to its intrinsic value and as a result, BI-LO is seeking to acquire Winn-Dixie at the most opportune time, and a price that significantly undervalues Winn-Dixie. In fact, Winn-Dixie shares traded as high as $9.81 as recently as July 20, 2011 and at least one analyst has set the high target price at $11.00 per share, both above the current offer.
Furthermore, the plaintiff, directors agreed to deal protections devices, such as a $19.6 million termination fee provision, that preclude other bidders from making a competing offer.
Those who currently are investors in Winn-Dixie shares and purchased their shares before the announcement have certain options and should contact the Shareholders Foundation.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
Source: The Shareholders Foundation, Inc.
