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Quixote Corporation Shareholder Alert: Investigation

If you are currently an investor in shares of Quixote Corporation (Public, NASDAQ:QUIX), and purchased the shares before December 30, 2009, you have certain options and you should contact the Shareholders Foundation.

You may contact us by using this form, or by sending an email to mail@shareholdersfoundation.com, or calling us at (858) 779-1554.

Company Name(s): 
Quixote Corporation
Affected Securities: 
NASDAQ: QUIX

An investigation on behalf of current investors Quixote Corporation (Public, NASDAQ:QUIX), who purchased QUIX shares before December 30, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was announced.

The investigation by a law firm focuses on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Quixote Corp. arising out of their attempt to sell Quixote Corporation (Public, NASDAQ:QUIX) to Trinity Industries, Inc. On December 30, 2009, Quixote Corporation (NASDAQ:QUIX) and Trinity Industries, Inc. (NYSE:TRN) announced that they have reached a definitive agreement for Trinity to acquire the outstanding common shares and equivalents of Quixote for cash of $6.38 per share, or approximately $61 million and that the transaction has been unanimously approved by Quixote's Board of Directors.

But according to an investigation by a law firm “the transaction appears to be unfair” to current investors of Quixote Corporation (Public, NASDAQ:QUIX) because the “offer to purchase Quixote Corporation (QUIX) appears opportunistically timed to take advantage of the current economic downturn” and is “grossly unfair, inadequate, and substantially below the fair or inherent value of QUIX”.

Shares of Quixote Corporation (QUIX) traded at $6.34 per share after the announcement and at $2.99 per share the trading day before the news. QIUX shares traded at $8.31 per share in Sept. 08, at $12.00 per share in April 08, at $18.77per share in Jan ’08, and over $20 per share in 2007.

The investigation “ concerns whether the Quixote Board of Directors breached their fiduciary duties to Quixote stockholders by failing to adequately shop the Company before entering into this transaction and whether Trinity is underpaying for Quixote shares, thus unlawfully harming Quixote stockholders. The offer price is below the 52-week high for Quixote shares and the $61 million transaction value is substantially below the Company's revenues of $95.82 million for the last twelve months.”

Quixote Corporation, located in Chicago, IL, through its subsidiaries, develops, manufactures and markets highway and transportation safety products to protect, direct and inform motorists and road workers in both domestic and international markets. As of June 30, 2009, the Company operated in two segments: Protect and Direct segment, and Inform segment. The Protect and Direct segment provides solutions for improving safety on the roads either by minimizing the severity of crashes that occur or by preventing crashes from occurring by directing or guiding traffic. Quixote Corporation reported on June 30, 2008 for the past 12 months Total Revenue of $101.81million and on June 30, 2009 for the past 12 months Total Revenue of $94.09million

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