SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of Metalico, Inc. (NYSE: MEA) breached their fiduciary duties in connection with the proposed sale of the Company to Total Merchant Limited.
Metalico engages in scrap metal recycling business. The company collects and processes ferrous and non-ferrous metals; and collects and processes industrial and obsolete scrap metal into reusable forms, and supplies recycled metals to consumers, including electric arc furnace mills, integrated steel mills, foundries, secondary smelters, aluminum recyclers, and metal brokers.
On June 16, 2015, Metalico announced it had signed a definitive merger agreement with Total Merchant. Under the terms of the agreement, Total Merchant will acquire all outstanding shares of Metalico for $0.60 per share.
The investigation concerns whether Metalico’s board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Metalico’s shares of common stock. One Wall Street analyst has a $1.00 price target on Metalico stock which is more than the $.60 offer price. Last year the stock traded as high as $1.67.
If you are a shareholder of Metalico and believe the proposed buyout price is too low or you’re interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471. If emailing, please include a phone number where you can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.