Ademi LLP is investigating Arch (NYSE: ARCH) for possible breaches of fiduciary duty and other violations of law in its transaction with CONSOL.
Arch stockholders will receive only 1.326 shares of CONSOL common stock for each share of Arch common stock owned. The transaction agreement unreasonably limits competing transactions for Arch by imposing a significant penalty if Arch accepts a competing bid. Arch insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Arch’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.