Ademi LLP is investigating Alleghany (NYSE: Y) for possible breaches of fiduciary duty and other violations of law in its transaction with Berkshire Hathaway.
Ademi LLP alleges Alleghany’s financial outlook and prospects are excellent and yet Alleghany shareholders will receive only $848.02, in a transaction with total equity value of approximately $11.6 billion. The transaction agreement unreasonably limits competing bids for Alleghany by prohibiting solicitation of further bids, and imposing a significant penalty if Alleghany accepts a superior bid. Alleghany insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Alleghany’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 Alleghany.