NEW YORK, May 31, 2016 /PRNewswire/ -- Milberg LLP is
investigating possible breaches of fiduciary duty and other
violations of law in connection with the proposed acquisition of
American Capital, Ltd. (ACAS) ("American Capital" or the "Company")
to Ares Capital Corporation (ARCC) ("Ares").
On May 23, 2016, American Capital
and Ares announced that they have entered into a definitive merger
agreement under which Ares will acquire American
Capital. As a result of separate transactions, one
involving the sale of American Capital to Ares and another
involving the sale of American Capital's mortgage portfolio
subsidiary (American Capital Mortgage Management, LLC) to another
entity (American Capital Agency Corp. (NASDAQ: AGNC), American
Capital stockholders will receive an aggregate of approximately
$17.40 in a combination of cash and
Ares stock for each share of American Capital owned.
Milberg LLP's investigation is focusing on the potential
unfairness of the consideration being offered to American Capital's
stockholders, as well as the process by which American Capital's
Board of Directors considered and approved the proposed deal, and
is (among other things) scrutinizing the Board's decision to sell
the Company at this time under the circumstances, including among
others those described below, rather than allowing American
Capital's stockholders the full opportunity to continue to
participate and share in America Capital's future prospects for
business and financial success and growth.
Among other things, the approximately $17.40 merger consideration is below the target
price of $18.00 per share recently
set by at least one independent stock analyst. In addition, on
May 6, 2016, American Capital
recently reported strong financial results for its first quarter
2016. For example, American Capital's total operating income
for that quarter reportedly increased 5.2% (to $162 million) when compared to the same period in
the prior year, and its net operating income reportedly rose 48%
(to $74 million) compared to the same
period the prior year.
Concerned investors are invited to contact the Milberg attorneys
listed below to discuss the investigation, their rights, and/or
potential remedies.
Founded in 1965, Milberg LLP was one of the first law firms to
prosecute class actions in federal courts on behalf of investors
and consumers and has been representing investors and
consumers for more than four decades, and has recovered billions of
dollars on behalf of aggrieved stockholders and consumers in
complex class and derivative litigation nationwide. Milberg
LLP, with offices in Manhattan,
Los Angeles and Detroit, is widely recognized as a leader in
defending the rights of victims of corporate and other large-scale
wrongdoing, serving as lead counsel in federal and state courts
throughout the United States. For more information, please
visit the firm website at www.milberg.com.
Contacts:
Milberg LLP
Kent A. Bronson
kbronson@milberg.com
Joshua Keller
jkeller@milberg.com
(212) 594-5300
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SOURCE Milberg LLP