NEW YORK, NY - Apollo Global’s proposed acquisition of The Fresh Market has sparked an investigation into the retailer’s Board of Directors.
“The investigation focuses on whether Fresh Market’s Board of Directors breached their fiduciary duties to the Company’s stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the company to the detriment of Fresh Market’s shareholders,” New York-based Farqui & Farqui, a national securities firm and conductor of the investigation, stated in a press release.
As we recently reported, The Fresh Market had happily announced its acceptance of Apollo Global’s offer at $28.50 per share for stockholders, coming out to a tender agreement totalling about $1.36 billion.
“We are pleased to have reached this agreement with Apollo, which follows a comprehensive review of strategic and financial alternatives that generated interest from numerous parties,” Rich Noll, The Fresh Market’s Lead Independent Director, had said in a statement announcing the company’s acceptance, adding that the Board of directors had found the offer maximized its value for stockholders “after an open and thorough process.”
Farqui & Farqui argues, however, that the current offer comes short of at least one analyst target price of $44 per share, and the 52-week high of $41.70 per share, according to the release.
The investigation is being made by Juan E. Monteverde, a partner at the firm. AndNowUKnow will continue to report as more developments come to light.
