Ademi LLP is investigating Meritor (NYSE: MTOR) for possible breaches of fiduciary duty and other violations of law in its transaction with Cummins.
Ademi LLP alleges Meritor’s financial outlook and prospects are excellent and yet Meritor shareholders will receive only $36.50 in cash per Meritor share, for a total transaction value of approximately $3.7 billion, including assumed debt and net of acquired cash.. The merger agreement unreasonably limits competing bids for Meritor by prohibiting solicitation of further bids, and imposing a significant penalty if Meritor accepts a superior bid. Meritor insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Meritor’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 Meritor.