SAN DIEGO and CHARLOTTE,
N.C., May 12, 2014 /PRNewswire/
-- Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Chelsea Therapeutics
International, Ltd (NASDAQ: CHTP) by the private equity firm H.
Lundbeck A/S. On May 8, 2014,
the two companies announced the signing of a definitive merger
agreement pursuant to which Lundbeck will commence a tender offer
for all outstanding shares of Chelsea Therapeutics. Under the
agreement, Chelsea Therapeutics shareholders will receive
$6.44 in cash for each share of
common stock as well as contingent value rights (CVRs) worth up to
$1.50, for a total possible
consideration of $7.94.
Is the Proposed Acquisition Best for Chelsea Therapeutics
and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors Chelsea Therapeutics is undertaking a fair process to
obtain maximum value and adequately compensate Chelsea Therapeutics
shareholders.
As an initial matter, the possible $7.94 merger consideration is significantly below
the target price set by at least three different analysts,
including a target price of $12.00
set by an analyst at JMP securities and a price of $10.00 set by an analyst at Needham and Co.
In addition, on February 18,
2014, the company announced that the U.S. Food and Drug
Administration granted accelerated approval of NORTHERATM
(drioxdiopa) for the treatment of symptomatic neurogenic
orthostatic hypotension. According to the company, NORTHERA is the
only therapy approved by the FDA to demonstrate symptomatic benefit
in patients with neurogenic orthostatic hypotension and represents
a "significant marketing opportunity" for the company.
Given these facts, Robbins Arroyo LLP is examining the Chelsea
Therapeutics board of directors' decision to sell the company to
Lundbeck. Chelsea Therapeutics shareholders have the option
to file a class action lawsuit to ensure the board of directors
obtains the best possible price for shareholders and the disclosure
of material information. Chelsea Therapeutics interested in
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
Logo -
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
SOURCE Robbins Arroyo LLP