The recent acquisition of Volcom, Inc. by PPR, a deal that was valued at approximately $516.1 million, has prompted an investigation on behalf of investors of Volcom, Inc. (NASDAQ:VLCM) in regards to possible breaches of fiduciary duties.
The investigation will verify whether or not the Volcom Board of Directors conducted a thorough and fair sales process or whether they failed to sufficiently shop the company and consider all shareholders before completing the merger transaction.
On May 2, 2011, Volcom announced that PPR, the French company who owns Gucci and Puma, agreed to pay $24.50 per share for each outstanding share of Volcom. The offer is reported to be a 24% premium over the trading price of Volcom stock.
However, the proposed transaction offers no change of control premium over the trading price of Volcom at various times over the past year. Our investigation concerns the Volcom board of directors’ process for consideration of the proposed transaction.
A potential class action lawsuit would aim to increase the amount of money and information Volcom shareholders would receive in a buyout.
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