SAN DIEGO and WESTLAKE VILLAGE, Calif., June 15, 2015 /PRNewswire/ -- Shareholder rights
attorneys at Robbins Arroyo LLP are investigating the proposed
acquisition of Ryland Group, Inc. (NYSE: RYL) by Standard Pacific
Corp. (NYSE: SPF). On June 14, 2015,
the two companies announced the signing of a definitive merger
agreement pursuant to which Standard Pacific will acquire
Ryland. Under the terms of the agreement, Ryland shareholders
will receive 1.0191 shares of Standard Pacific common stock for
each share of Ryland they own, the value which is equivalent to
$42.59 per share.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/the-ryland-group-inc
Is the Proposed Acquisition Best for Ryland and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Ryland is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $42.59
merger consideration represents a discount of -0.4% based on
Ryland's closing price on June 12,
2015. This premium is significantly below the average
one-day premium of nearly 88.5% for comparable transactions within
the past three years. Further, the $42.59 merger consideration is below the target
prices of eight analysts ranging from $55.00 set by an analyst at Evercore ISI on
April 14, 2015, to $43.00 set by an analyst at MKM Partners on
January 30, 2015. In the last three
years, Ryland traded as high as $50.01 on May 14,
2013, and most recently traded above the target price – at
$42.77 – on February 4, 2015.
On April 30, 2015, Ryland reported
strong quarterly earnings results for its first quarter 2015. Total
revenues were $517.4 million, an
increase of 5.7% compared to Q1 2014. Net income was $26.5 million, an increase of 12.5% over Q1 2014.
Additionally, Ryland has beat consensus analyst estimates for
adjusted EPS and adjusted net income for 3 out of the past 4
quarters.
In light of these facts, Robbins Arroyo LLP is examining
Ryland's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Ryland 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.
Ryland 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
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP