October 28, 2016 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of B/E Aerospace Inc (NASDAQ:BEAV), was announced concerning whether the takeover of B/E Aerospace Inc. by Rockwell Collins for a value of $62.00 per share is unfair to NASDAQ:BEAV stockholders.
The investigation by a law firm concerns whether certain officers and directors of B/E Aerospace Inc breached their fiduciary duties owed to NASDAQ:BEAV investors in connection with the proposed acquisition.
On October 23, 2016, Rockwell Collins and B B/E Aerospace Inc (NASDAQ:BEAV) announced that they have entered into an agreement under which Rockwell Collins will acquire B/E Aerospace for approximately $6.4 billion in cash and stock, plus the assumption of $1.9 billion in net debt. Under the terms of the agreement, each B/E Aerospace Inc (NASDAQ:BEAV) shareowner will receive total consideration of $62.00 per share, comprised of $34.10 per share in cash and $27.90 in shares of Rockwell Collins common stock, subject to a 7.5% collar.
However, the investigation concerns whether the offer is unfair to NASDAQ:BEAV stockholders. More specifically, the investigation concerns whether the B/E Aerospace Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
B/E Aerospace Inc reported that its annual Total Revenue rose from over $2.59 billion in 2014 to over $2.72 billion in 2015 and that its Net Income increased from $104.30 million in 2014 to $285.70 million in 2015. Shares of B/E Aerospace Inc (NASDAQ:BEAV) closed on October 28, 2016 at $59.50 per share.