Ademi LLP is investigating Consolidated Communications (NASDAQ: CNSL) for possible breaches of fiduciary duty and other violations of law in its transaction with Searchlight and BCI.
In the transaction, Consolidated Communications stockholders are expected to receive only $4.70 per share in an all-cash transaction valued at approximately $3.1 billion, including the assumption of debt. The transaction agreement unreasonably limits competing transactions for Consolidated Communications by imposing a significant penalty if Consolidated Communications accepts a competing bid. Consolidated Communications insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Consolidated Communications’ board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.