Kendall Law Group Announces Shareholder Investigation into Switch and Data Facilities Co., Inc.
Business Wire
Oct 23, 2009
Kendall Law Group, led by a former federal judge and former US Attorney,
announces a shareholder investigation into the Board of Directors of
Switch and Data Facilities Co., Inc. (NASDAQ: SDXC) in connection with
the proposed acquisition by Equinix.
On October 21, 2009, Switch and Data announced that it had an agreement
to sell the company to Equinix for approximately $689 million in cash
and stock. According to the agreement, shareholders will receive either
0.19409 shares in Equinix stock or $19.06 in cash per SDXC stock owned.
Overall consideration to be paid by Equinix is being set at 80% stock
and 20% cash. The merger consideration will be pro-rated in the event
that investors holding more than 80% of Switch & Data’s stock elect to
receive Equinix stock or holders of more than 20% elect to receive cash.
Certain officers and directors of Switch and Data have agreed to vote
shares representing 35% of outstanding stock in favor of the transaction.
Kendall Law Group’s investigation concerns whether the consideration to
be paid to shareholders below the fair or inherent value of the Company
and whether the directors and may have breached their fiduciary duties
by not acting in the shareholders’ best interests in connection with the
sale process.
Kendall Law Group has nationwide experience representing investors in
mergers and acquisitions. For information about your rights as a SDXC
shareholder, contact attorney Hamilton Lindley at 877-744-3728 or by
email at hlindley@kendalllawgroup.com.
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