Ademi LLP is investigating WWE (NYSE: WWE) for possible breaches of fiduciary duty and other violations of law in its transaction with Endeavor.
Ademi LLP alleges WWE’s financial outlook and prospects are excellent and yet the transaction values WWE’s shares at only approximately $106 per share (before any post-closing dividend) with Endeavor holding a 51% controlling interest in the new company and existing WWE shareholders holding a 49% interest in the new company. The transaction agreement unreasonably limits competing bids for WWE by imposing a significant penalty if WWE accepts a superior bid. WWE insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of WWE’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 WWE.