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WeissLaw LLP: Supervalu Inc. Acquisition May Not Be In The Best Interest of SVU Shareholders

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WeissLaw LLP: Supervalu Inc. Acquisition May Not Be In The Best Interest of SVU Shareholders

PR Newswire

NEW YORK, Aug. 3, 2018 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Supervalu Inc. ("SVU" or the "Company") (NYSE: SVU) in connection with the proposed acquisition of the Company by United Natural Foods Inc. ("UNFI") (NASDAQ:UNFI).  Under the terms of the acquisition agreement, shareholders will receive $32.50 in cash for each SVU share they own. 

WeissLaw is investigating whether SVU's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, at least one analyst set a target price of $55.00, or $22.50 above the offer price.

Additionally, according to UNFI's CEO, "[t]his transaction accelerates UNFI's 'Build out the Store' growth strategy by immediately enhancing our product range, equipping us to bring an attractive, comprehensive product portfolio to an expanded universe of customers."  UNFI expects the acquisition of SVU to:

  1. Diversify its customer base;
  2. Expand its market reach and scale; and
  3. Deliver synergies of more than $175 million within the first three years.

Finally, the Company recently announced positive financial results for the first quarter of 2018.  It reported consolidated net sales of $4.76 billion, representing an increase of 35% year-over-year when compared to the $3.52 billion it reported in the same period of previous year.

Given these facts, WeissLaw is investigating whether SVU's Board acted in the best interests of SVU's public shareholders to maximize shareholder value prior to entering into the agreement.  If you own SVU shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com.  

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/supervalu-inc/

 

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SOURCE WeissLaw LLP

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