New York based law firm Levi & Korsinsky, LLP said on Monday that it has commenced a lawsuit class action in New York Supreme Court challenging the fairness of the sale of dry bulk specialist Baltic Trading Limited to Genco Shipping & Trading Limited.
Genco and its subsidiary Baltic Trading entered into a definitive merger agreement at the beginning of April under which Genco acquired Baltic Trading in a stock-for-stock transaction.
Under the terms of the transaction, Baltic shareholders were due to receive only 0.216 of a share of Genco common stock for each share of Baltic stock they own. The proposed transaction is valued at USD 1.69 per share.
Levi & Korsinsky is still collecting the necessary paperwork and complaint forms in pursuit of a lead plaintiff candidate before it officially files the case to the court.
“The investigation concerns whether the Board of Baltic Trading breached their fiduciary duties to stockholders by failing to adequately shop the Company before agreeing to enter into this transaction, and whether Genco is underpaying for Baltic Trading shares,” the law firm said in an announcement.
According to a national securities and shareholder rights law firm Tripp Levy PLLC., which is investigating the stock-for-stock acquisition agreement, the offer price of only USD 1.69 per share unfairly undervalues the true going forward inherent value of Baltic.
Legal representatives of Baltic Trading’s shareholders, Brodsky & Smith, also said that the shares are being undervalued under the deal.
The Pennsylvania-based law office of Brodsky & Smith launched an investigation into the merger for possible breaches of fiduciary duty on the part of the Board of Baltic, as well as other violations of state law.
World Maritime News Staff