Lundy Law Commences An Investigation Into The Proposed Acquisition Of MCG Capital Corporation
Lundy Law is investigating potential claims against the Board of Directors of MCG Capital Corporation (“MCG Capital” or the “Company”) (NASDAQ: MCGC) for possible breaches of fiduciary duty and other violations of law in connection with the proposed sale of the Company to PennantPark Floating Rate Capital Ltd. (PFLT). Under the terms of the proposed transaction, shareholders of MCG Capital will receive $4.521 in PFLT shares and $0.226 per share in cash for each share of MCG Capital common stock owned (or the equivalent of approximately $4.75).
Among other things, the investigation concerns whether the proposed transaction undervalues the Company and whether the Board of Directors of MCG Capital is achieving the best possible value for the Company’s shareholders. While the merger offer price is approximately $4.75, in the last three years MCG Capital has traded as high as $5.55 per share. Most recently, MCG Capital traded above the offer price on January 22, 2014, trading as high as $4.76 per share.
If you own shares of MCG Capital common stock and wish to discuss the legal ramifications of the investigation, or have any questions, contact Lundy Law who will, without obligation or cost to you, answer your questions. For more information you may contact David Promisloff, co-counsel to Lundy Law directly at 1-800-LundyLaw, or visit https://www.lundylaw.com/press-releases/mcgc/.
Lundy Law has worked hard for more than 50 years to help injured people get the results they need. In addition to shareholder actions and class actions, Lundy Law practices in the areas of personal injury, product liability, auto accident and workers’ compensation. Lundy Law has collected hundreds of millions of dollars in settlements and successful verdicts for our clients. With offices throughout the Delaware Valley and Lehigh Valley, including Philadelphia, Cherry Hill, Wilmington, Bethlehem, and Reading, we care about helping people, no matter how hard the challenge.
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LUNDY LAW, LLP
David M. Promisloff, Esq., Co-Counsel to Lundy Law