DALLAS - U.S. Home Systems shareholders are being coaxed by Dallas law firm Kendall Law to join a challenge to the cabinetry refacing firm's proposed acquisition by Home Depot Inc.
The law firms note that the offering by The Home Depot of $12.50 per share is $2.25 below the March 1, 2012 trading price of U.S. Home Systems, which announced record quarterly revenues earnings the day it agreed to be acquired by Home Depot. The Home Depot buyout, already accepted by U.S. Home Systems' board, values the refinishing and refacing firm at $93.4 million.
Each law firm questions whether the board fulfilled obligations to get the best deal for shareholders. “We believe that the transaction may undervalue U.S. Home Systems stock. Our lawsuit will seek to obtain the highest share price for all shareholders,” said Power Taylor lawyer Willie Briscoe of power Taylor in a statement.
Law firms mounting legal challenges to takeovers of publicly traded firms need a shareholder group with sufficient percentage ownership to make a credible challenge. They are often compensated based on the success of their efforts.
Have something to say? Share your thoughts with us in the comments below.