SAN DIEGO & SAN FRANCISCO, July 14, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of URS Corporation (NYSE: URS) by AECOM Technology Corporation (NYSE: ACM). On July 14, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which URS shareholders will receive $33.00 in cash and 0.734 shares of AECOM common stock for each URS share owned, for a total consideration of $56.31.
Is the Proposed Acquisition Best for URS and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at URS is undertaking a fair process to obtain maximum value and adequately compensate URS shareholders.
As an initial matter, the $56.31 merger consideration represents a premium of just 8.2% based on URS's closing price on July 11, 2014, the last day of trading before the merger announcement. This premium is significantly below the average one-day premium of 134.59% for comparable transactions in the past year. Further, on May 13, 2014, URS released its earnings for the company's first quarter of 2014, reporting strong revenues of $2.5 billion. URS Chairman and Chief Executive Officer Martin M. Koffel commented on the company's financial results noting that: "We are pleased with the growth in our oil and gas backlog and near-term prospects, which reflects developing momentum in this business. We also achieved strong growth in our power business this quarter, and continue to see robust opportunities in the infrastructure and industrial sectors, and an improved contracting environment in our federal business."
In light of these facts, Robbins Arroyo LLP is examining the URS board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
URS shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. URS shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, 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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SOURCE Robbins Arroyo LLP