Home Diagnostics, Inc. Shareholders Alert - Investigation of Nipro Corporation offer
Investigation on behalf of investors of Home Diagnostics, Inc. (Public, NASDAQ:HDIX) shares over possible breach of fiduciary duty by the Home Diagnostics board of directors – Contact the Shareholders Foundation
An investigation on behalf of current investors Home Diagnostics, Inc. (Public, NASDAQ:HDIX), who purchased HDIX shares before February 03, 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 Home Diagnostics, Inc. (NASDAQ:HDIX), and purchased the shares before February 03, 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 Home Diagnostics, Inc. arising out of their attempt to sell Home Diagnostics, Inc. (Public, NASDAQ:HDIX) to Nipro Corporation.
On February 03, 2010 Home Diagnostics, Inc. (NASDAQ: HDIX) announced that it signed a definitive merger agreement with Nipro Corporation, under which Nipro will acquire all outstanding shares of Home Diagnostics' common stock, $.01 par value, for a cash purchase price of $11.50 per share (or aggregate consideration of approximately $215 million). According to Home Diagnostics the transaction has been approved by Nipro and the board of directors of Home Diagnostics, and the offer price represents an approximately 90% premium to the closing price of Home Diagnostics' common stock on February 2, 2010, and an approximately 83% premium to Home Diagnostics' average closing price for the preceding 90 days.
But according to one investigation by a law firm “the transaction appears to be unfair” to current investors of Home Diagnostics, Inc. (NASDAQ:HDIX) because the “offer to purchase Home Diagnostics, Inc. (HDIX) 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 HDIX”.
Home Diagnostics, Inc. reported in 2007 Total Revenue of $115.60million with a Net Income of $9.63million and in 2008 Total Revenue of $123.58million with a Net Income of $9.64million. Shares of Home Diagnostics, Inc. (Public, NASDAQ:HDIX) traded after the announcement at $11.43 per share, and before the news at $6.10 per share. HDIX shares reached in 2008 $10.50 per share, and in 2007 over$12 per share.
The investigation “concerns whether the Home Diagnostics, Inc. Board of Directors breached their fiduciary duties to Home Diagnostics, Inc. (HDIX) stockholders by failing to adequately shop the Company before entering into this transaction and whether Nipro Corp. is underpaying for Home Diagnostics, Inc. (HDIX) shares, thus unlawfully harming HDIX 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 $11.50 per share and also because it appears that the Board of Directors has agreed to refrain from shopping the Company to other potential suitors to obtain a better price than the $11.50 per share offered. “
Those who currently are investors in shares of Home Diagnostics, Inc. (Public, NASDAQ:HDIX), and purchased the shares before February 03, 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
