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King Pharmaceuticals, Inc. board investor investigation

By Don Amos / October 14, 2010

financial news– In response to the buyout offer by Pfizer to take over King Pharmaceuticals, Inc. at $14.25 an investigation on behalf of investors of King Pharmaceuticals, Inc. (NYSE:KG) over possible breaches of fiduciary duties in connection with the proposed takeover was announced.

If you are a current investor in King Pharmaceuticals, Inc. (NYSE:KG) shares, and/or have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

The investigation by a law firm concern whether King Pharmaceuticals and its Board of Direcotrs breached their fiduciary duties owed to King Pharmaceuticals, Inc. (NYSE:KG) investors by agreeing to the current conditions of the proposed takeover by Pfizer.

On Tuesday, October 12, 2010, King Pharmaceuticals, Inc. (NYSE: KG) and Pfizer Inc.(NYSE: PFE) announced that they have entered into a merger agreement under which Pfizer will acquire King Pharmaceuticals, Inc for $3.6 billion in cash, or $14.25 per share. According to King Pharmaceuticals the offer represents a premium of approximately 40% to King Pharmaceuticals’ closing price as of October 11, 2010, and 46% percent to the one-month average closing price as of the same date.

But the investigation by a law firm questions whether the sale process and the offered price are unfair to the shareholders of King Pharmaceuticals, Inc. (NYSE:KG).

Shares of King Pharmaceuticals, Inc. (KG), which traded before the news at roughly $10.20 per share, jumped to $14.15 per share or by almost 40% in response to the takeover announcement. But King Pharmaceuticals shares traded as early as April at $12.14, in March as high as $12.54, and in January over $13 per share leaving King Pharmaceuticals investors with a meager premium. During 2007 KG shares traded as high as $21.46 per share and at least one analyst has set a price target of $15.00 per share for King Pharmaceuticals stock. In addition King Pharmaceuticals reported over the past four years steady 12months revenue ranging from $1.565billion to $2.136billion.

Therefore the investigation concerns whether the King Pharmaceuticals board of directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of King Pharmaceuticals, Inc. (NYSE:KG) and breached their fiduciary duties to King Pharmaceuticals, Inc. (NYSE:KG) shareholder by failing to adequately shop the Company before entering into the transaction with Pfizer.

Those who are current investors in King Pharmaceuticals, Inc. (Public, NYSE:KG) common shares, and/or have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

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Don Amos

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