SAN DIEGO and AUSTIN,
Texas, Feb. 3, 2014
/PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo
LLP are investigating the acquisition of ArthroCare Corporation
(NASDAQ: ARTC) by Smith and Nephew plc (NYSE: SNN). On
February 3, 2014, the two companies
announced the signing of a definitive merger pursuant to which
Smith & Nephew will acquire ArthroCare in an all-cash offer
which will pay ArthroCare shareholders $48.25 per share of common stock.
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Is the Proposed Merger Best for ArthroCare and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at ArthroCare is undertaking a fair process to obtain
maximum value and adequately compensate ArthroCare shareholders in
the merger.
As an initial matter, the $48.25
merger consideration is substantially below the three target prices
including a price of $60.00 set by an
analyst at Craig-Hallum Capital Group on January 8, 2014 and a price of $56.00 set by an analyst at Canaccord Genuity on
January 7, 2014. In addition,
the $48.25 merger consideration
represents a premium to shareholders of 6% based on the company's
closing price on January 31,
2014. This one day premium is significantly below the average
one day premium of over 35% for comparable transactions in the last
three years. In addition, ArthroCare shares traded above the offer
price as recently as January 27,
2014, and reached a high of $49.95 on January 8,
2014.
Further, on October 29, 2013,
ArthroCare released its earnings for the fiscal quarter ended
September 30, 2013, and reported
increases in total revenue, product sales, and gross profit.
Specifically, the company reported that total revenue increased to
$91.9 million, or 5.7%, compared to
the same quarter 2012. Product sales for the third
quarter 2013 increased 5.4% compared to 2012, reaching $87.1 million. Further, the company's gross
profit for the third quarter increased to $63.0 million compared to $60.7 million in the third quarter of
2012.
Given these facts, Robbins Arroyo LLP is examining the
ArthroCare board of directors' decision to sell the company to
Smith & Nephew now rather than allow shareholders to continue
to participate in the company's continued success and future growth
prospects.
ArthroCare 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. Arthrocare shareholders 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
SOURCE Robbins Arroyo LLP