New York-based law firm Rigrodsky & Long, P.A. has launched an investigation into potential legal claims against the board of directors of dry bulk shipping company Baltic Trading Limited regarding possible breaches of fiduciary duties and other violations of law related to Baltic’s acquisition deal with Genco Shipping & Trading Limited.
Rigrodsky & Long is the fourth law firm to join the investigation efforts targeting the acquisition amid concerns over the price of the Baltic’s shares being too low.
“The investigation concerns whether Baltic’s board of directors failed to adequately shop the company and obtain the best possible value for Baltic’s shareholders before entering into an agreement with Genco,” said Rigrodsky & Long in an announcement.
Under the terms of the agreement, shareholders of Baltic will receive 0.216 shares of Genco for each share of Baltic common stock owned. Based on Genco’s closing price on April 7, 2015, the day prior to the announcement, Baltic shareholders would have received compensation valued at approximately $1.60 per share.
Genco and Baltic signed the stock-for-stock merger agreement on April 8, creating a dry bulk shipping company with a fleet of 70 vessels and an aggregate carrying capacity of approximately 5,159,000 dwt.
Following the customary closing conditions and approvals, the transaction is expected to close in the third quarter of 2015.