SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of Pike Corporation (NYSE: PIKE), breached their fiduciary duties in connection with the proposed sale of the company to Court Square Capital Partners in partnership with J. Eric Pike, the Company's Chairman and Chief Executive Officer.
Pike provides energy solutions for investor-owned, municipal, and co-operative electric utilities in the United States.
On August 4, 2014, Pike and Court Square Capital Partners entered into an agreement whereby Court Square Capital Partners and J. Eric Pike, the Company's Chairman and Chief Executive Officer, will acquire Pike. Under the terms of the agreement, Pike shareholders will receive $12.00 per share in cash for each share of Pike they own. Mr. Pike will remain as CEO in the newly formed private Company.
The investigation concerns whether Pike’s board members failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock. Additionally, the investigation will determine whether Pike’s CEO, J. Eric Pike, took advantage of his position by structuring a deal that pays an unfair price to Pike shareholders. Pike stock traded at $12.57 in 2013 and one Wall Street analysts has a $13.00 per share price target.
If you are a shareholder of Pike and believe (1) the proposed buyout price is too low or (2) the deal favors the officers and directors and not the shareholders and (3) 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.
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.