Ademi LLP is investigating Kraton (NYSE: KRA), for possible breaches of fiduciary duty and other violations of law in its transaction with DL Holdings.
Ademi LLP alleges Kraton’s financial outlook and prospects are excellent and yet Kraton shareholders will receive only $46.50 in cash for each share of Kraton common stock they own in an all-cash transaction implying an enterprise value of approximately $2.5 billion. The merger agreement unreasonably limits competing bids for Kraton by prohibiting solicitation of further bids, and imposing a significant penalty of $63 million if Kraton accepts a superior bid. Kraton insiders will receive substantial benefits as part of change of control arrangements. We are investigating the conduct of Kraton’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 Kraton.