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WeissLaw LLP: Deltic Timber Corporation Acquisition May Not Be in the Best Interests of DEL Shareholders

PCH

PR Newswire

NEW YORK, Oct. 24, 2017 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Deltic Timber Corporation ("DEL" or the "Company") (NYSE: DEL) in connection with the proposed acquisition of the Company by Potlatch Corporation ("PCH") (NASDAQ: PCH).  Under the terms of the acquisition agreement, the Company's shareholders will receive 1.80 common shares of PCH for each DEL share they own, representing consideration of $92.25 based on PCH's October 24 closing price.  

WeissLaw is investigating whether DEL's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, the per-share consideration offers virtually no premium over the Company's October 20 closing price.  In addition, the transaction is a lopsided agreement that favors the interests of PCH and its shareholders.  This is a point further highlighted by PCH's Chairman and CEO when he underscored some of the benefits his company will gain through this transaction, specifically:

  • Significant gains in scale through DEL's 933,000 acres in Arkansas;
  • Substantial expansion in sawmill capacity; and
  • Robust financial profile with strong growth facilitated by the newly-combined company's gains in scale.

Finally, upon completion of the transaction, DEL shareholders will own a measly 35% of the combined company.

Given these facts, WeissLaw is investigating whether DEL's shareholders will obtain their fair and proportionate share of the Company's continued success and future growth prospects.  If you own DEL shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/deltic-timber-corporation/

View original content:http://www.prnewswire.com/news-releases/weisslaw-llp-deltic-timber-corporation-acquisition-may-not-be-in-the-best-interests-of-del-shareholders-300542686.html

SOURCE WeissLaw LLP