COMSYS IT Partners, Inc. Shareholders Alert - Investigation of Board of Directors
Investigation on behalf of investors of COMSYS IT Partners, Inc. (Public, NASDAQ:CITP) shares over possible breach of fiduciary duty by the COMSYS IT Partners board of directors – Contact the Shareholders Foundation
An investigation on behalf of current investors in COMSYS IT Partners, Inc. (Public, NASDAQ:CITP), who purchased CITP shares before February 02, 2010, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was announced.
If you are currently an investor in shares of COMSYS IT Partners, Inc. (NASDAQ:CITP), and purchased the shares before February 02, 2010, you have certain options and you should contact the Shareholders Foundation at:
The investigations by law firms focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of COMSYS IT Partners arising out of their attempt to sell COMSYS IT Partners, Inc. to Manpower Inc. (NYSE: MAN). On February 02, 2010 Manpower Inc. today it has entered into an agreement, which has been approved by the boards of directors of both companies, to acquire COMSYS IT Partners, Inc. (Nasdaq: CITP) in a $431 million transaction. According to Manpower, Manpower has agreed to acquire all of the outstanding shares of COMSYS common stock pursuant to an exchange offer in which COMSYS stockholders can elect to receive for each of their COMSYS shares either $17.65 per share in cash or a fraction of a share of Manpower common stock equal to $17.65 divided by the average trading price of Manpower common stock during the ten trading days ending on and including the second trading day prior to the closing of the exchange offer, subject to a requirement that no more than 50% of the aggregate consideration in either the exchange offer or the subsequent merger will be cash or stock (subject to certain adjustments).
But according to one investigation by a law firm “the transaction appears to be unfair” to current investors of COMSYS IT Partners, Inc. (Public, NASDAQ:CITP) because the “offer to purchase COMSYS IT Partners, Inc. (CITP) appears opportunistically timed to take advantage of the current economic downturn” and is “grossly unfair, inadequate, and substantially below the fair or inherent value of CITP”.
COMSYS IT Partners, Inc. reported in 2007 Total Revenue of $743.26million with a Net Income of $33.35million and in 2008 Total Revenue of $727.11million with a Net Loss of $65.19million. Shares of COMSYS IT Partners, Inc. (CITP) traded before the announcement at about $14.50 per share, and at $17.45 per share after the news. CITP shares reached almost $25 per share in 2007. During the dotcom bubble CITP.
The investigation “concerns whether the COMSYS IT Partners, Inc. Board of Directors breached their fiduciary duties to COMSYS IT Partners, Inc. (NASDAQ:CITP) stockholders by failing to adequately shop the Company before entering into this transaction and whether Manpower Inc. is underpaying for COMSYS IT Partners, Inc. (Public, NASDAQ:CITP) shares, thus unlawfully harming CITP stockholders.” Another investigation calls the deal even “suspicious because it appears from a review of the Company's financial statements that the inherent value of the Company's stock is greater than $17.65 per share and also because the Board of Directors has agreed to refrain from shopping the Company to other potential suitors to obtain a better price than the $17.65 per share offered.”
Those who currently are investors in shares of COMSYS IT Partners, Inc. (NASDAQ:CITP), and purchased the shares before February 02, 2010, have certain options and should contact the Shareholders Foundation at:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739 mail@shareholdersfoundation.com www.ShareholdersFoundation.com
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Advertising. The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. 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
