Shareholder rights attorneys at Robbins Arroyo LLP are investigating
the proposed acquisition of KLA-Tencor Corporation (NASDAQ: KLAC) by Lam
Research Corporation (NASDAQ: LRCX). On October 21, 2015, the two
companies announced the signing of a definitive merger agreement
pursuant to which Lam Research will acquire KLA-Tencor. Under the terms
of the agreement, KLA-Tencor shareholders will receive $32.00 in cash
and 0.5 of a share of Lam Research for each share of KLA-Tencor they
own, the value of which is equivalent to $67.02 per share of KLA-Tencor.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/kla-tencor-corporation
Is the Proposed Acquisition Best for KLA-Tencor and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of
directors at KLA-Tencor is undertaking a fair process to obtain maximum
value and adequately compensate its shareholders.
As an initial matter, the $67.02 merger consideration represents a
premium of only 24.4% based on KLA-Tencor's closing price on October 20,
2015. This premium is significantly below the average one-day premium of
nearly 35% for comparable transactions within the past five years. In
the last three years, KLA-Tencor traded as high as $84.21 on November
25, 2014, and most recently traded above the merger consideration – at
$67.50 – on January 23, 2015.
On October 21, 2015, KLA-Tencor reported strong earnings results for its
first quarter 2016. Net income for the quarter was $105 million, an
increase of 46% compared to the first quarter of 2015. Additionally,
KLA-Tencor has beat consensus analyst estimates for adjusted EPS,
adjusted net income, and sales in each of the past five quarters. In
commenting on these results, KLA-Tencor President and Chief Executive
Officer Rick Wallace remarked, "KLA-Tencor posted solid results for the
first quarter of fiscal year 2016, with new orders and earnings per
share finishing above the range of guidance, and with revenue finishing
at the top end of the range of guidance, demonstrating our market
leadership, the resilience of our business model, and effective
operational execution. The strong demand we are experiencing affirms
KLA-Tencor's ongoing focus on providing superior value to customers both
in terms of meeting market requirements and delivering superior
competitive offerings."
In light of these facts, Robbins Arroyo LLP is examining KLA-Tencor's
board of directors' decision to sell the company now rather than allow
shareholders to continue to participate in the company's continued
success and future growth prospects.
KLA-Tencor shareholders have the option to file a class action lawsuit
to ensure the board of directors obtains the best possible price for
shareholders and the disclosure of material information. KLA-Tencor
shareholders interested in information about their rights and potential
remedies can contact attorney Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com,
or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities
litigation and shareholder rights law. The law firm represents
individual and institutional investors in shareholder derivative and
securities class action lawsuits, and has helped its clients realize
more than $1 billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
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