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Lawyer Questions Rentrak Sale Agreement
New York lawyer Faruqi & Faruqi, LLP has announced an investigation into the proposed sale of Rentrak to comScore, suggesting the directors of the former may have breached their fiduciary duties in agreeing the sale price of around $732m.
The class action lawyers point out that under the proposed deal Rentrak's stockholders will 'only' receive 1.15 shares of comScore, currently valued at around $53.15 (ref comScore's closing share price on September 30th), for each share of Rentrak they own - while Rentrak's shares had traded much higher ('$71.89 as recently as August 4th, 2015'), and 'at least one analyst' had set a much higher target price.
Faruqi & Faruqi says the investigation will focus on 'whether Rentrak's Board of Directors breached their fiduciary duties to the Company's stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of Rentrak's shareholders'.
Other companies in the sector have faced claims that they sold too quickly or at too low a price, including Infogroup and Arbitron.
Web sites: www.faruqilaw.com , www.rentrak.com and www.comscore.com .
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