Lorillard, Inc.
LORILLARD SHAREHOLDER ALERT - Andrews & Springer LLC Is Seeking More Cash for Shareholders of Lorillard, Inc. - LO
(Wilmington, DE) Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating potential breach of fiduciary duty claims against the Board of Directors of Lorillard, Inc. (“Lorillard” or the “Company”) (NYSE: LO) relating to the sale of the Company to Reynolds American, Inc. (NYSE: RAI) (“Reynolds”). On July 15, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which Reynolds will acquire Lorillard in a merger valued at roughly $27.4 billion. As a result of the merger, Lorillard shareholders are only anticipated to receive $50.50 per share in cash and 0.2909 shares of Reynolds in exchange for each share of Lorillard. The total consideration Lorillard shareholders are expected to receive is only $68.88 per share.
Our Firm’s investigation has so far uncovered that the process leading up to the announcement of the merger appears to have some questionable conflicts of interest, thus making the process and consideration unfair. As indicated by the Company, Lorillard’s President and CEO Murray Kessler will join Reynolds’s board of directors once the merger is closed. Also the consideration that Lorillard shareholders are expected to receive is inadequate. Based on Reynolds’ closing price on July 14, 2014 of $63.18 per share, Lorillard shareholders are expected to receive only a 2.47% premium for their shares. The 0.2909 exchange ratio also appears to restrict the value that Lorillard shareholders are expected to receive by exposing Lorillard shareholders to the volatility of Reynolds’ share price.
If you own shares of Lorillard and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/lo or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.