SAN DIEGO and LINCOLN, R.I., Nov. 11,
2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins
Arroyo LLP are investigating the proposed acquisition of Costa Inc.
(NASDAQ: ATX) by Essilor International (EPA: EI). Costa and
Essilor announced the signing of a definitive merger agreement
pursuant to which Essilor will acquire Costa. Under the terms
of the agreement, holders of Costa will receive $21.50 in cash for each share
owned.
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Is the Merger Best for Costa and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Costa is undertaking a fair process to obtain
maximum value and adequately compensate Costa shareholders in the
merger. As an initial matter, the $21.50 consideration represents a premium of only
7.6% based on Costa's closing price on November 7, 2013. This premium is
substantially below the median one-day premium of 19.89% for
comparable transactions in the last three years. Further, the
merger consideration is below the target price of $29.00 set by an analyst at D.A. Davidson &
Co. and the $27.00 price set by an
analyst at Benchmark Company LLC. In addition, Costa is
currently experiencing success and growth in its business
prospects, as indicated in its October 30,
2013 press release announcing the company's financial
results for its third quarter 2013. In particular, Costa
reported:
- Sales growth of 26.3% to $24.6
million, compared to $19.4
million for the same quarter 2012;
- Sales growth of 20.7% to $80.8
million, for the nine months ended September 28, 2013 and;
- Sunglass sales increase of 24.1% and accessories sales increase
of 46.6%
Given these facts, Robbins Arroyo LLP is examining the Costa
board of directors' decision to sell the company to Essilor now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects, and
whether they are seeking to benefit themselves.
Costa shareholders have the option to file a class action
lawsuit to secure the best possible price for shareholders and the
disclosure of material information so shareholders can tender their
shares in an informed manner. Costa shareholders interested
in information about their rights and potential remedies can
contact attorney Darnell R. Donahue
at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP
