Tuesday, 31 May 2016
Last updated 3 days ago
May 26 2010 | 9:38am ET
In the nine days since the Man Group announced its plan to buy GLG Partners, only one shareholder lawsuit has been filed seeking to block the deal. But there could soon be a whole lot more.
Within days of the announcement, nine separate law firms announced investigations into the deal on behalf of GLG stockholders, according to the SPAC Report. Among the firms looking into whether there has been a breach of fiduciary duty are Brodsky & Smith, Bull & Lifshitz, Kendall Law Group and Levi & Korsinsky.
Investor advocacy group the Shareholder Foundation is also probing the deal.
While Man’s offer price for GLG shares was a 55% premium to their price just prior to the announcement, it is also a 52% discount to what GLG shares traded for when the London-based hedge fund went public in a reverse-merger on the New York Stock Exchange in 2007. At their peak, GLG shares traded at $13.90; Man wants to pay $4.50.