Ademi LLP is investigating CatchMark (NYSE: CTT) for possible breaches of fiduciary duty and other violations of law in its transaction with PotlatchDeltic.
Ademi LLP alleges CatchMark’s financial outlook and prospects are excellent and yet CatchMark holders will receive only 0.23 common shares of PotlatchDeltic stock for each common share of CatchMark that they own. This reflects a price per share of $12.88 for each common share of CatchMark. The transaction agreement unreasonably limits competing bids for CatchMark by imposing a significant penalty if CatchMark accepts a superior bid. CatchMark insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of CatchMark’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for CatchMark.