SAN DIEGO and PHOENIX,
Oct. 23, 2013 /PRNewswire/
-- Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the merger of Cole Real Estate Investments, Inc.
(NYSE: COLE) with American Realty Capital Properties, Inc. (NASDAQ:
ARCP).
(Logo:
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)
Learn more about our investigation on our Shareholder Rights
Blog:
http://www.robbinsarroyo.com/shareholders-rights-blog/cole-real-estate-investments/
On October 23, 2013, Cole and
American Realty jointly announced the signing of a definitive
merger agreement under which American Realty will acquire Cole in a
transaction pursuant to which shareholders will choose whether to
receive 1.0929 shares of American Realty stock or $13.82 in cash per share. The transaction
is expected to close in the first half of 2014.
Is the Merger Best for Cole and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Cole is undertaking a fair process to obtain
maximum value and adequately compensate Cole shareholders in the
merger. As an initial matter, there is at least one analyst
with a target of $15, which is above
the offer price.
Moreover, Cole is currently experiencing success and growth in
its business prospects, as indicated in its August 5, 2013 press release announcing the
company's financial results for its second quarter ending
June 30, 2013. In particular,
Cole reported:
- a 91% increase in consolidated revenue for the quarter;
- a 40% increase in Consolidated Normalized EBITDA for the
quarter; and
- a 26% net income increase.
In announcing these results, Marc
Nemer, chief executive officer of Cole, stated: "We are one
of the largest publicly-traded REITs in the net-lease sector and we
believe we are well positioned to generate continued growth and
returns for our shareholders." Notably, Nemer and
Christopher H. Cole, executive
chairman of the board of directors, have entered into an agreement
with American Realty relating to their separation from Cole in
connection with the transaction and to which they are entitled
pursuant to their respective employment agreements.
Given these facts, Robbins Arroyo LLP is examining Cole's board
of directors' decision to sell the company to American Realty now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects, and
whether they are seeking to benefit themselves.
Cole shareholders have the option to file a class action lawsuit
to secure the best possible price for shareholders and the
disclosure of material information so shareholders can decide
whether to tender their shares in an informed manner. Cole
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 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. For more information, please go to
http://www.robbinsarroyo.com.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP