Buyout Investor Alert: Motley Rice reviewing potential claims connected to SWS Group, Inc. (NYSE: SWS) buyout
Motley Rice is reviewing potential claims involving the proposed acquisition of SWS Group, Inc. (“SWS” or the “Company”) (NYSE: SWS) by Hilltop Holdings Inc. (“Hilltop”) (NYSE: HTH).
• Own shares of SWS Group, Inc. (NYSE: SWS) that were purchased before April 1, 2014?
• Think the proposed buyout price is too low?
• Have concerns about the terms of the agreement or how it may affect your share value?
• Want to discuss your rights and potential legal options?
On Tuesday, April 1, 2014, the board of directors for SWS announced that the Company had agreed to be acquired by Hilltop Holdings, the Dallas, TX parent of PlainsCapital Bank, in a deal valued at approximately $316 million (excluding Hilltop’s shares). Under the proposed merger, SWS shareholders will receive 0.2496 shares of Hilltop common stock and $1.94 in cash for each share of SWS they own. Based on Hilltop’s closing stock price on March 31, 2014, the total consideration is valued at approximately $7.88 per share.
Motley Rice’s review centers on claims by hedge fund manager and SWS shareholder, Jeffrey E. Eberwein, that SWS rejected a higher offer of $8-a-share cash proposal by Esposito Global, a Dallas financial services firm headed by former SWS employee Mark A. Esposito. Eberwein also alleges that the SWS board failed to shop the Company to other potential buyers. Because corporate executives are legally obligated to maximize shareholder value when considering and negotiating terms of a proposed merger or acquisition, SWS shareholders are entitled to question the propriety of the proposed acquisition.
Please contact attorney William Norton (SC, NY, MA) by email or at 843.216.9195 if you own common stock of SWS Group, Inc. (NYSE: SWS) that was purchased prior to April 1, 2014 and have questions about any potential claims or wish to better understand your legal rights.
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Motley Rice is one of the nation’s largest plaintiffs’ litigation firms. Our securities, antitrust and consumer fraud lawyers represent public pension funds, unions, multi-employer plans and other institutional investors in antitrust actions, securities fraud class actions, shareholder rights campaigns, and direct and derivative actions to improve corporate governance, ensure fairness and openness in mergers and acquisitions, and recover damages for fiduciaries' wrongdoing.
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