An investigation on behalf of investors of HomeFed Corporation (OTC: HOFD) in connection with the proposed takeover was announced and OTC: HOFD stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/20/2019 -- An investigation was announced concerning whether the takeover of HomeFed Corporation is unfair to OTC: HOFD stockholders.
Investors who purchased shares of HomeFed Corporation (OTC: HOFD) and currently hold any of those OTC: HOFD shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of HomeFed Corporation breached their fiduciary duties owed to OTC: HOFD investors in connection with the proposed acquisition.
Carlsbad, CA based HomeFed Corporation, together with its subsidiaries, invests in and develops residential and commercial real estate properties in California, Virginia, South Carolina, Florida, Maine, and New York. On February 19, 2019, Jefferies Financial Group Inc. (NYSE: JEF) announced that it is proposing to acquire the remaining common stock of HomeFed Corporation (OTC: HOFD) not already owned by Jefferies Financial Group Inc (the "Proposed Transaction"). The Proposed Transaction would entail Jefferies Financial Group Inc issuing two shares of Jefferies Financial Group Inc common stock for each share of the HomeFed Corporation's common stock to be acquired by Jefferies Financial Group Inc.
On April 15, 2019, it was announced that Jefferies Financial Group Inc would purchase HomeFed, offering HomeFed shareholders a combination of cash and stock. Then on May 2, 2019, HomeFed filed a form with the SEC announcing that the merger has been amended. Under the terms of the modified transaction, HomeFed shareholders will receive 2.0 shares of Jefferies Financial Group Inc common stock for each share of HomeFed common stock they own. This represented a cash equivalent value of $42.04 as of Jefferies' closing price on February 19, 2019, the day the acquisition was proposed, and currently represents a cash equivalent value of $39.84 as of Jefferies' closing price on May 7, 2019.
However, given that OTC: HOFD shares traded in 2018 as high as $58.00 per share and that Jefferies Financial Group Inc currently owns 70.1% of HomeFed Corporation (OTCMKTS: HOFD), the investigation concerns whether the offer is unfair to OTC: HOFD stockholders. More specifically, the investigation concerns whether the HomeFed Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Shares of HomeFed Corporation (OTC: HOFD) closed on May 17, 2019, at $37.25 per share.
Those who are current investors in HomeFed Corporation (OTC: HOFD) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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