The lawyers are circling on the Zentih deal:
BOULDER, Colo., Feb 18, 2010 (BUSINESS WIRE) -- The Shuman Law Firm today
announced that it is investigating potential breaches of fiduciary duty and
other violations of state law on behalf of shareholders of Zenith National
Insurance Corp. ("Zenith" or the "Company") (NYSE: ZNT) in connection with their
attempt to sell the Company to Fairfax Financial Holdings Limited ("Fairfax")
(TSX: FFH).
Under the terms of the transaction, Zenith shareholders will receive $38.00 in
cash for each Zenith share of common stock they own for a total transaction
value of approximately $1.4 billion.
For the quarter ending September 30, 2009, Zenith reported gross profit of
$156.888 million and net income of $19.2 million as compared to gross profit and
net income of $139.177 million and $1.8 million, respectively, for the prior
quarter. Also, at least one analyst has set a price target for Zenith stock at
$40.00 per share. The investigation concerns whether the Zenith Board of
Directors breached their fiduciary duties to Zenith stockholders by failing to
adequately shop the Company before entering into this transaction and whether
Fairfax is underpaying for Zenith shares, thus unlawfully harming Zenith
stockholders.
If you are interested in discussing your rights as a Zenith shareholder, or have
information relating to this investigation, please contact Rusty E. Glenn toll
free at 866-974-8626 or email Mr. Glenn at
[email protected].
The Shuman Law Firm represents investors throughout the nation, concentrating
its practice in securities class actions and shareholder derivative actions.
SOURCE: The Shuman Law Firm
CONTACT:
The Shuman Law Firm
Rusty E. Glenn, Esq., 866-974-8626
Fax: 303-484-4886
[email protected]
www.shumanlawfirm.com
Copyright Business Wire 2010
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