NEW YORK, April 28, 2010 (GLOBE NEWSWIRE) -- Levi & Korsinsky is investigating the Board of Directors of Union National Financial Corporation ("Union Financial" or the "Company") (OTCBB:UNNF) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Donegal Group, Inc. ("Donegal") (Nasdaq:DGICA). Under the terms of the transaction, Union Financial shareholders will receive $5.05 in cash and 0.2134 Donegal shares for each share of Union Financial they own. Based on the prior closing price of Donegal stock, the transaction values Union Financial shares at approximately $8.18 per share for a total transaction value of approximately $21 million.
The investigation concerns whether the Union National Board of Directors breached their fiduciary duties to Union National stockholders by failing to adequately shop the Company before entering into this transaction and whether Donegal is underpaying for Union Financial shares, thus unlawfully harming Union Financial stockholders. In particular, the Company has a book value of $10.97 per share and the Board agreed to a no-solicitation provision and agreed to pay Donegal an $800,000 termination fee, under certain circumstances.
If you own common stock in Union Financial and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (212) 363-7500 or visit http://www.zlk.com/union-financial-unnf.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.