Ademi LLP is investigating Terminix (NYSE: TMX), for possible breaches of fiduciary duty and other violations of law in its transaction Rentokil.
Ademi LLP alleges Terminix’s financial outlook and prospects are excellent and yet Terminix shareholders will receive only the equivalent of $55 per share comprising approximately 80% Rentokil stock and 20% cash. The merger agreement unreasonably limits competing bids for Terminix by prohibiting solicitation of further bids, and imposing a significant penalty if Terminix accepts a superior bid. Terminix insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Terminix’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 Terminix.