A number of US law firms are investigating PolyOne’s $246m takeover of Spartech Corporation after claims the board of Spartech failed to obtain the optimum value for the shares.
The terms of the agreement provide that Spartech shareholders receive $2.67 in cash and 0.3167 shares of PolyOne common stock for each share of Spartech common stock, the combined value of which was $8 at the time of the stock closing on 23 October, claimed Harwood Feffer LLP.
Several law firms questioned whether Spartech's board of directors breached its fiduciary duties by failing to adequately solicit competing bidders for the company and obtaining the best possible value for shareholders before entering into an agreement with PolyOne.
The investigations will focus around possible breaches of fiduciary duty related to the company's efforts and the deal remains subject to approval by Spartech's shareholders and other regulatory approvals before expected completion in Q1 2013.
The total cost of the deal is $393m, with PolyOne assuming Spartech’s net debt of $142m.