SAN DIEGO & VAN NUYS, Calif.--(BUSINESS WIRE)--Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Electro Rent Corp. (NASDAQ: ELRC) by Platinum Equity LLC. On May 31, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Platinum Equity will acquire Electro Rent. Under the terms of the agreement, Electro Rent shareholders will receive $13.12 in cash for each share of Electro Rent common stock.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/electro-rent-corp
Is the Proposed Acquisition Best for Electro Rent and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Electro Rent is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $13.12 merger consideration is significantly below the target price of $15.00 set by an analyst at Sidoti & Company LLC on April 8, 2016. In the last three years, Electro Rent traded as high as $21.58 on November 29, 2013, and most recently traded above the merger consideration – at $13.20 – on February 27, 2015.
In light of these facts, Robbins Arroyo LLP is examining Electro Rent's board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Electro Rent shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Electro Rent shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
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.
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