Brodsky & Smith LLC investigates on MTR and Eldorado Resorts’ merger deal
The law office of Brodsky & Smith LLC has confirmed it is to investigate potential claims against the board of directors at US horseracing and casino operator MTR Gaming Group ahead of its proposed merger with casino operator Eldorado Resorts.
The investigation by the law firm surrounds possible breaches of fiduciary duty and other violations of state law by the MTR board of directors for not acting in shareholders’ best interests.
Under the terms of the acquisition, MTR shareholders may opt to receive other $5.15 (€3.86) in cash or share in the new firm – valued at $5.15 per share for each share of MTR stock owned.
MTR shareholders can elect to receive $5.15 per share up to 5.8 million shares, while Eldorado will be issued 35.6 million shares – 55% of the new company.
The transaction may be undervalued as MTR stock traded at $5.56 per share in June 2012. An analyst set a price target of $7.00 per share for MTR stock.