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Company Name(s):
AdvocatCase Name:
Advocat Deal Case 05/18/2012Case Status:
Lawsuit FiledSummary:
May 22, 2012 (Shareholders Foundation) -- An investor in NASDAQ:AVCA shares filed a lawsuit against members of the board of directors of Advocat Inc for rejecting the offer by Covington Investments, LLC to take over Advocat Inc at $8.50 per share.
According to the complaint the plaintiff alleges that defendants breached their fiduciary duties by rejecting the offer from Covington Investments, LLC.
On May 11, 2012, Covington Investments, LLC announced that it submitted a non-binding proposal to acquire all outstanding common shares of Advocat Inc. (NASDAQ: AVCA) for $8.50 per share in cash in a negotiated transaction. Among other things, Covington Investments, LLC said its offer is a 47% premium over the average closing price of NASDAQ:AVCA shares during the past three years and a 55% premium over the average closing share price during the past 90 days.
However, plaintiff claims that the defendants refused to even consider the $8.50 per-share offer from Covington.
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