NEW YORK, May 31, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating potential claims on behalf of investors of Central Vermont Public Service Corporation ("CV" or the "Company") concerning the proposed acquisition of CV by Fortis, Inc. ("Fortis").
The investigation concerns whether the board of directors breached their fiduciary duties by failing to adequately shop the Company and maximize shareholder value. Under the terms of the agreement, CV shareholders will receive approximately $35.10 per share in cash for an aggregate purchase price of $700 million. Fortis will assume approximately $230 million of debt, bringing the transaction value to about $470 million. CV utility rates are among the lowest in New England, and under these terms, shareholders will not benefit from the higher revenues as CV utility rates increase in the future. Further, there appears to be a low revenue multiple for this deal when examined against comparable acquisitions.
CV shareholders seeking more information about this acquisition are advised to contact Gustavo Bruckner, Esq. at firstname.lastname@example.org or 212-661-1100 or toll free at 888-476-6529, ext. 302. Shareholders may also contact Rachelle R. Boyle at email@example.com or 212-661-1100 or 888-476-6529, ext. 237.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP 888-476-6529 (ext. 237) 212-661-1100 (ext. 237) firstname.lastname@example.org