DALLAS, Feb. 16, 2012 /PRNewswire/ -- Former United
States Securities and Exchange Commission attorney Willie Briscoe
and the securities litigation firm of Powers Taylor, LLP are
investigating the sale of Advance America, Cash Advance Centers,
Inc. ("Advance America" or "AEA") (NYSE: AEA) to Grupo Elektra,
S.A.B. de C.V. for shareholders. Under the proposed
transaction, Advance America shareholders will receive $10.50 in cash for each share of Advance
America/AEA stock owned, which is well below the target price of
$11.00 per share announced by
analysts.
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If you are an affected investor, and you want to learn more
about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free
(877) 728-9607, via e-mail at patrick@powerstaylor.com, or
Willie Briscoe at The Briscoe Law
Firm, PLLC, (214) 706-9314, or via email at
WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to
you.
The definitive merger agreement involves an all cash transaction
with a total equity value of approximately $780 million, including outstanding debt.
The deal is expected to close during the first half of
calendar year 2012.
The investigation centers on whether Advance America
shareholders are receiving adequate compensation for their shares
in the buyout, whether the transaction undervalues Advance America
stock, and whether Advance America's board attempted to obtain the
highest share price for all shareholders prior to agreeing to the
deal. Although the acquisition price represents an
approximate 31% premium over the closing price of Advance America
shares the day prior to the buyout announcement, Advance America
shares closed as high as $10.46 per
share as recently as December 6,
2011. Further, according to Yahoo! Finance, at least one
analyst has reported that the true inherent value of Advance
America shares may be as high as $11.00 per share. According to shareholder rights
attorney Willie Briscoe, "Because of
the lack of a significant premium to the shareholders and other
factors, we believe that the transaction may undervalue Advance
America stock. Our lawsuit will seek to obtain the highest
share price for all shareholders."
The Briscoe Law Firm, PLLC is a full service business litigation
and shareholder rights advocacy firm with more than 20 years of
experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that
handles a variety of complex business litigation matters, including
claims of investor and stockholder fraud, shareholder oppression,
shareholder derivative suits, and security class actions.
SOURCE Powers Taylor, LLP