Posts Tagged ‘Switch Data’

Kendall Law Group Announces Shareholder Investigation into Switch and Data Facilities Co., Inc. (NASDAQ: SDXC)

Friday, October 23rd, 2009

(DALLAS) Kendall Law Group, led by a former federal judge and former US Attorney, announces a shareholder investigation into the Board of Directors of Switch and Data Facilities Co., Inc. (NASDAQ: SDXC) in connection with the proposed acquisition by Equinix.

On October 21, 2009, Switch and Data announced that it had an agreement to sell the company to Equinix for approximately $689 million in cash and stock. According to the agreement, shareholders will receive either 0.19409 shares in Equinix stock or $19.06 in cash per SDXC stock owned. Overall consideration to be paid by Equinix is being set at 80% stock and 20% cash. The merger consideration will be pro-rated in the event that investors holding more than 80% of Switch & Data’s stock elect to receive Equinix stock or holders of more than 20% elect to receive cash. Certain officers and directors of Switch and Data have agreed to vote shares representing 35% of outstanding stock in favor of the transaction.

Kendall Law Group’s investigation concerns whether the consideration to be paid to shareholders below the fair or inherent value of the Company and whether the directors and may have breached their fiduciary duties by not acting in the shareholders’ best interests in connection with the sale process.

Kendall Law Group has nationwide experience representing investors in mergers and acquisitions. For information about your rights as a SDXC shareholder, contact attorney Hamilton Lindley at 877-744-3728 or by email at hlindley@kendalllawgroup.com.