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Pike Corporation Merger Review

Pike merger under review for fairness

The Pike Corporation (NYSE:PIKE) board of directors has agreed to sell the company to the the current CEO and an investment firm.  If the deal stands, each Pike shareholder would receive $12.00 in cash for each share of stock they own.  The transaction as structured between Court Square Capital Partners and Pike Corporation represents a total transaction value of approximately $595 million, consisting of an equity value of approximately $395 million and net debt of approximately $200 million.

Who is the acquiring entities.   Court Square Capital Partners in partnership with J. Eric Pike, the Company's Chairman and Chief Executive Officer, will acquire Pike.

Pike shareholders are entitled to answers to important questions regarding the proposed merger

  • Does the merger agreement contain unfair termination provisions?  
  • Does the merger agreement place perhaps an undue burden on the board of directors relating to subsequent offers from third parties. 
  • Did the Pike board of directors obtain a fairness opinion from an independent investment bank?  
  • What did the independent fairness show?
  • Did the board of directors engage other potential suitors?  This question always comes front and center when the current CEO is part of the acquisition group.
  • Why did the board of directors suddenly change the forum election clause in the bylaws?

Pike merger or takeover shareholder lawsuit investigation

State security laws provide shareholders a no cost means to question a proposed sale of a publicly traded company.  This review process is deemed a shareholder class action and affords at times shareholders an avenue to investigate fully the proposed transaction.  At minimum, this process often obtains answers to the above questions.  If you own the common stock of Pike and if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please fill out the contact form on this web page.