BOULDER, Colo., Nov. 18, 2008 (GLOBE NEWSWIRE) -- Advertising Material -- The Shuman Law Firm today announced that it is investigating the proposed acquisition of Centennial Communications Corp. ("Centennial" or the "Company") (Nasdaq:CYCL).
Centennial recently announced their intent to sell the Company to AT&T, Inc for $8.50 a share, or $944 million in cash. The total value of the deal, including assumption of debt, is $2.8 billion. The transaction price may be unfair given that the Company's shares closed at $8.70 as recently as June 5, 2008 and analyst projections of at least $11 per share price target for Centennial stock. Compounding the merger price is a host of deal protection devices which protect AT&T at the expense of Centennial shareholders, including: (i) a no-solicitation provision that effectively prevents the Company from negotiating with or providing confidential Company information to competing bidders; (ii) a matching rights provision that allows AT&T up to three business days to match any competing proposal; (iii) a termination fee provision that obligates the Company to pay AT&T $28.5 million plus $7 million in expenses for a total of $35.5 million in the event a superior proposal is made and accepted; and (iv) a voting agreement that obligates the Company's largest shareholder, Welsh, Carson, Anderson & Stowe VIII, L.P. to vote its shares - representing 22.3% of the Company's outstanding shares - in favor of the Proposed Buyout. These factors, taken together, may inhibit the maximization of shareholder value.
If you currently own Centennial common stock and would like a free consultation concerning your rights and interests, please contact Kip Shuman, Esq. or Rusty Glenn, Esq. toll-free at 866-974-8626 or email Mr. Shuman at kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and shareholder derivative litigation.
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