SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of AmTrust Financial Services, Inc. (Nasdaq: AFSI) by Stone Point Capital LLC, together with Barry D. Zyskind, Chairman and CEO of AmTrust, and George and Leah Karfunkel. On January 9, 2018, the family who originally helped found AmTrust – the Karfunkel-Zyskind Family – along with private equity funds managed by Stone Point Capital, LLC offered a non-binding proposal pursuant to which Stone Point Capital, LLC will acquire all outstanding shares of AmTrust that the Karfunkel-Zyskind Family does not currently own. Under the terms of the agreement, AmTrust shareholders will receive $12.25 for each share of AmTrust common stock.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/amtrust-financial-services-inc-jan-2018
Is the Proposed Acquisition Best for AmTrust and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at AmTrust is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $12.25 merger consideration represents a premium of only 19.6% based on AmTrust's closing price on December 7, 2017, which is below the average 1-month premium of nearly 23.58% for comparable transactions within the past five years. Further, the $12.25 merger consideration is significantly below the target price of $16.00 set by an analyst at SunTrust Robinson on November 27, 2017, and $15.00 set by an analyst at Compass Point on December 22, 2017. In the last three years, AmTrust traded as high as $35.94 on August 4, 2015, and most recently traded above the merger consideration – at $12.37 – on November 8, 2017.
AmTrust 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. AmTrust shareholders interested in information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, firstname.lastname@example.org, 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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