(PRNewswire) Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Pinnacle Foods, Inc. by Hillshire Brands Company. Yesterday, the two companies announced the signing of a definitive merger agreement, pursuant to which Pinnacle Foods shareholders will receive $18.00 in cash and 0.50 shares of Hillshire Brands common stock for each share of common stock, for a total consideration of $36.48.
Robbins Arroyo's investigation will focus on whether the board of directors at Pinnacle is undertaking a fair process to obtain maximum value for shareholders. As an initial matter, the $36.48 merger consideration represents a premium of just 19.8 percent, based on Pinnacle's closing price on May 9. This premium is significantly below the average one-day premium of over 30 percent for comparable transactions in the past three years.