SAN DIEGO and ARLINGTON, Va., June
30, 2015 /PRNewswire/ -- Shareholder rights attorneys
at Robbins Arroyo LLP are investigating the proposed acquisition of
Towers Watson & Co. (NasdaqGS: TW) by Willis Group Holdings PLC
(NYSE: WSH). On June 30, 2015,
the two companies announced the signing of a definitive merger
agreement pursuant to which Willis Group will acquire Towers
Watson. Under the terms of the agreement, Towers Watson
shareholders will receive 2.6490 shares of Willis for each share of
Towers Watson they own, along with a $4.87 one-time cash dividend, the value of which
is equivalent to $125.13 for each
share of Towers Watson common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/towers-watson-co
Is the Proposed Acquisition Best for Towers Watson and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Towers Watson is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $125.13
merger consideration represents a discount of -8.90% based on
Towers Watson's closing price on June
1, 2015. This discount is significantly below the
average one-month premium of nearly 50.5% for comparable
transactions within the past two years. Further, the
$125.13 merger consideration is
significantly below the target price of nine analysts ranging from
$157.00 set by an analyst at Piper
Jaffray on March 4, 2015, and
$129.00 set by an analyst at Goldman
Sachs on May 19, 2015.
Furthermore, Towers Watson traded above the target price at
$141.88 on June 26, 2015.
On May 5, 2015, Towers Watson
reported strong earnings results for its third quarter of fiscal
year 2015. Total revenues were $921
million, an increase of 2% over the third quarter of 2014.
Net income was $104 million, an
increase of 2% over the third quarter of fiscal year 2014.
Additionally, Towers Watson beat consensus analyst estimates
for adjusted earnings per share, adjusted net income, and sales in
every quarter for the past year. In commenting on these results,
Towers Watson Chief Executive Officer John
Haley remarked, "We are very pleased with our third quarter
results…. The fiscal year-to-date results are a testament [to] the
work ethic of our associates, and their commitment to creating
value for our clients. These factors are critical as we continue to
focus on building long-term sustainable earnings growth."
In light of these facts, Robbins Arroyo LLP is examining Towers
Watson'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.
Towers Watson 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. Towers Watson 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
Logo -
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/robbins-arroyo-llp-acquisition-of-towers-watson--co-tw-by-willis-group-holdings-plc-wsh-may-not-be-in-shareholders-best-interests-300107160.html
SOURCE Robbins Arroyo LLP