June 13, 2013 (Shareholders Foundation) - An investigation on behalf of investors in Belo Corp (NYSE:BLC) shares was announced concerning whether the offer by Gannett Co., Inc. to acquire Belo Corp. for $13.75 per NYSE:BLC share and the takeover process are unfair to investors in Belo shares.
The investigation by a law firm concerns whether certain officers and directors of Belo Corp breached their fiduciary duties owed to NYSE:BLC investors in connection with the proposed acquisition.
On June 13, 2013, Gannett Co., Inc. (NYSE: GCI) and Belo Corp. (NYSE: BLC) announced that they have entered into a merger agreement under which Gannett will acquire all outstanding shares of Belo Corp. for $13.75 per share in cash, or approximately $1.5 billion, plus the assumption of $715 million in existing debt for an enterprise value of approximately $2.2 billion. Belo Corp. said the offer represents a 28.1 percent premium to the closing price of Belo common stock on June 12, 2013.
However, given that following the takeover news NYSE:BLC shares increased to $13.67 per share on June 13, 2013, the investigation a law firm concerns whether the offer is too low for NYSE:BLC stockholders. More specifically, the investigation focuses on whether the Belo 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.
Belo Corp (NYSE:BLC) reported that its annual Total Revenue rose from $650.14 million in 2011 to $714.72 million in 2012 and that its respective Net Income increased from $57.96 million to $100.17 million.
Shares of Belo Corp (NYSE:BLC) grew from $0.88 per share in March 2009 to $11.64 per share in May 2013.
On June 13, 2013 NYSE:BLC shares closed at $13.66 per share.