SAN DIEGO and HAYWARD, Calif., Dec. 16, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Solta Medical, Inc. (NASDAQ: SLTM) by Valeant Pharmaceuticals International Inc. (NYSE: VRX). On December 16, 2013, Valeant Pharmaceuticals announced the signing of a definitive merger agreement pursuant to which the company will acquire all outstanding common stock of Solta Medical for $2.92 per share in cash.
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Is the Proposed Merger Best for Solta Medical and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Solta Medical is undertaking a fair process to obtain maximum value and adequately compensate Solta shareholders in the merger. As an initial matter, there are currently four analysts with a target price above $3.00, which is above the offer price, with the Maxim Group maintaining a target price of $4.00 since May 2, 2013.
Moreover, on November 11, 2013, Solta Medical announced a plan to improve shareholder value by, among other things, reducing annual expenses by $12 million and generate more than $8 million positive cash flow from operations. In a press release announcing implementation of the plan, Solta Medical’s Interim CEO, Mark Sieczkarek, commented, “To achieve our 2014 objectives, we have implemented cost reductions that included a reduction in work force. We have carefully reviewed the implications of the reductions we have made and are confident that we will be able to maintain our robust product pipeline and continue to bring to market innovative aesthetic products. These changes will improve our financial results next year, while making us a more customer friendly organization.”
Given these facts, Robbins Arroyo LLP is examining the Solta Medical board of directors’ decision to sell the company to Valeant Pharmaceuticals now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects, and whether they are seeking to benefit themselves.
Solta Medical shareholders have the option to file a class action lawsuit to ensure the board of directors properly evaluates the proposal to obtain the best possible price for shareholders and the disclosure of material information. Solta Medical 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.
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Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP
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