Investigation Overview
January 21, 2014 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of SWS Group Inc (NYSE:SWS) shares, was announced concerning whether the takeover of SWS Group Inc by Hilltop Holdings Inc. for $7.00 per share is unfair to NYSE:SWS stockholders.
The investigation by a law firm concerns whether certain officers and directors of SWS Group Inc breached their fiduciary duties owed toNYSE:SWS investors in connection with the proposed acquisition.
On January 10, 2014 / SWS Group Inc confirmed that it received an unsolicited acquisition proposal from Hilltop Holdings Inc. (NYSE: HTH) to acquire the outstanding common stock that Hilltop does not already own for $7.00 per share in 50% cash and 50% Hilltop common stock.
However, given that at least one analyst has set the high target price for NYSE:SWS shares at $8.00 and NYSE:SWS shares jumped in the open market after the takeover news to $7.85 per share, the investigation concerns whether the $7.00offer is unfair to NYSE:SWS stockholders. More specifically, the investigation concerns whether the SWS Group Board of Directors will undertake an adequate sales process, adequately shop the company before entering into any transaction, maximize shareholder value by negotiating the best price, and act in the shareholders' best interests in connection with the proposed sale.
On January 17, 2014, NYSE:SWS shares closed at $7.64 per share.
