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
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.
investigation is "focused on the potential unfairness" of the
takeover price, the company said.
Spokesmen for PCC and Timet
couldnt be reached for comment.