April 12, 2017 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of CU Bancorp (NASDAQ:CUNB), was announced concerning whether the takeover of CU Bancorp. by PacWest Bancorp is unfair to NASDAQ:CUNB stockholders.
The investigation by a law firm concerns whether certain officers and directors of CU Bancorp breached their fiduciary duties owed to NASDAQ:CUNB investors in connection with the proposed acquisition.
On April 06, 2017, PacWest Bancorp (Nasdaq:PACW) and CU Bancorp (NASDAQ:CUNB) announced the signing of an agreement and plan of merger whereby PacWest will acquire CU Bancorp in a transaction valued at approximately $705 million. Under terms of the Agreement, CU Bancorp (NASDAQ:CUNB) shareholders will receive 0.5308 shares of PacWest common stock and $12.00 in cash for each share of CU Bancorp. Based on PacWests April 5, 2017 closing price of $51.72, the total value of the merger consideration is $39.45 per CU Bancorp share.
However, given that at least one analyst has set the high target price for NASDAQ:CUNB share at $43.00 per share, the investigation concerns whether the offer is unfair to NASDAQ:CUNB stockholders. More specifically, the investigation concerns whether the CU Bancorp 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.
CU Bancorp reported that its Net Income rose from $8.91 million in 2014 to $27.46 million in 2016.
Shares of CU Bancorp (NASDAQ:CUNB) closed on April 12, 2017 at $38.55 per share.