My God yes…get me more money…
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Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the board of directors of Colonial Properties Trust (CLP) breached their fiduciary duties in connection with the proposed acquisition by Mid-America Apartment Communities Inc. (MAA).
On June 3, 2013, Mid-America announced that it had entered into a definitive merger agreement to acquire Colonial Properties. Colonial Properties shareholders will receive 0.36 of a Mid-America share for each share of Colonial Properties owned. Based upon Friday’s closing price this represents $24.47 per share.
The investigation will determine whether the board of directors breached their fiduciary duties to stockholders by failing to satisfactorily shop the company before entering into this agreement. Jim Baker, lead analyst for Johnson & Weaver, stated that, “Mid-America’s offer appears to be inadequate and not in the best interest of Colonial Properties shareholders.” Baker noted that this real estate investment trust (REIT) has been steadily increasing dividends to shareholders as a result of its superior performance. Additionally, many analysts have a price target greater than the buyout price.