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MILWAUKEE, Aug. 10, 2015 (GLOBE NEWSWIRE) -- We are investigating the Board of Directors of Rentech for possible breaches of fiduciary duty and other violations of state law in connection with the sale of Rentech to CVR.
Rentech’s long-term financial outlook is positive and yet shareholders will receive only 1.04 units of CVR Partners and $2.57 cash for each Rentech unit held. CVR is well aware of Rentech’s improving financial metrics and is purchasing Rentech at a substantial discount. The merger agreement unreasonably limits prospective bids by (i) prohibiting solicitation of any further bids, and (ii) imposing a termination penalty should Rentech receive and accept a superior bid. Rentech’s insiders and their affiliates own significant stock, and will receive millions of dollars as part of change of control arrangements. These insiders can unduly influence a sale of Rentech, which may not be in the best interests of non-insider shareholders. Our investigation centers on the conduct of Rentech’s Board of Directors, who have unanimously approved the transaction, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Rentech given its current financial condition and prospects.
We specialize in shareholder litigation involving buyouts, mergers, and individual shareholder rights throughout the country. For more information, please feel free to call us. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Ademi & O’Reilly, LLP Guri Ademi 3620 East Layton Ave. Cudahy, WI 53110 Toll Free: (866) 264-3995 Fax: (414) 482-8001 www.ademilaw.comNEXT ARTICLE
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