Ademi LLP is investigating Dover (NYSE: DVD), for possible breaches of fiduciary duty and other violations of law in its transaction with Speedway Motorsports.
Ademi LLP alleges Dover’s financial outlook and prospects are excellent and yet Dover shareholders will receive only $3.61 per share in cash for an approximate total equity value of $131.5 million. The merger agreement unreasonably limits competing bids for Dover by prohibiting solicitation of further bids, and imposing a significant penalty if Dover accepts a superior bid. Dover insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Dover’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 Dover.