NEW YORK At least eight law firms are mulling shareholder lawsuits stemming from Precision Castparts Corp.s (PCCs) pending acquisition of Titanium Metals Corp. (Timet).
PCC, a Portland, Ore.-based producer of castings, forgings, fasteners and aerostructures, said late last week that it would acquire Dallas-based producer Timet for $2.9 million (amm.com, Nov. 9). But the law firms are questioning the $16.50 per share that PCC intends to pay, suggesting that this might be too low.
The firms include Bernstein Liebhard LLP, Kirby McInerney LLP, Levi & Korsinsky LLP, and Harwood Feffer LLP, all based in New York; as well as Washington-based Finkelstein Thompson LLP; Barrett Johnston LLC, Nashville, Tenn.; Rigrodsky & Long PA, Wilmington, Del.; and Wayne, Pa.-based Ryan & Maniskas LLP. Class-action lawsuits are among the law firms specialties.
Kirby McInerney said that securities analysts have set a median price target of $17 for Timet, "and at least one analyst has set a price target of $20 per share21 percent above the proposed acquisition price." The firm added that it is also looking into whether Timets board of directors "violated its fiduciary duties" by agreeing to the acquisition and whether the proposed price "adequately values" Timet.
Bernstein Liebhards investigation is "focused on the potential unfairness" of the takeover price, the company said.
Spokesmen for PCC and Timet couldnt be reached for comment.