WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of FairPoint Communications, Inc. (“FRP” or the “Company”) in connection with the proposed acquisition of the Company by Consolidated Communications Holdings, Inc. (“CNSL”). On December 5, 2016, FRP announced it had reached a definitive agreement for CNSL to acquire all outstanding shares of FRP in an all-stock transaction valued at $1.5 billion, inclusive of debt. Under the terms of the agreement, FRP shareholders will receive 0.73 of a CNSL share; representing consideration of $19.86, based on CNSL’s December 5 closing price.
WeissLaw is investigating whether FRP’s Board acted to maximize shareholder value prior to entering into the agreement. Notably, at least one analyst set a target price of $20.00. Moreover, according to Bob Udell, CNSL’s President and CEO, the transaction “significantly expands [CNSL’s] broadband reach and scale, and is cash flow accretive upon close.” Further, the acquisition of the Company increases CNSL’s market share, adding the 17 states in which FRP operates and more than 21,000 miles of fiber routes; making CNSL the ninth-largest fiber provider in the U.S., with 35,100 miles of fiber across 24 states. Finally, upon completion of the transaction, FRP shareholders will own a meagre 28.7% of the combined company.
Given these facts, WeissLaw is investigating the Board of Directors’ decision to sell FRP and whether FRP shareholders will obtain their fair and proportionate share of the Company’s continued success and future growth prospects. If you own FRP 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 firstname.lastname@example.org.
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 email@example.com or fill out the form on our website, http://www.weisslawllp.com/fairpoint-communications-inc/