The Ademi Firm is investigating HomeStreet (NASDAQ: HMST) for possible breaches of fiduciary duty and other violations of law in its transaction with Mechanics Bank.
Click here to learn how to join our investigation and obtain additional information or contact us at gademi@ademilaw.com or toll-free: 866-264-3995. There is no cost or obligation to you.
The reverse merger transaction values HomeStreet at a pre-transaction estimated equity value of $300 million and Mechanics Bank at a pre-transaction estimated equity value of $3.3 billion. Upon completion of the transaction, existing HomeStreet shareholders are expected to own approximately 8.3% of the combined company, and the remaining ownership of approximately 91.7% will be held by legacy Mechanics Bank shareholders, with Ford Financial Fund and its affiliates owning approximately 74.3% of the combined company.
HomeStreet insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for HomeStreet by imposing a significant penalty if HomeStreet accepts a competing bid. We are investigating the conduct of the HomeStreet board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
We specialize in shareholder litigation involving buyouts, mergers, and individual shareholder rights. For more information, please feel free to call us. Attorney advertising. Prior results do not guarantee similar outcomes.
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Contacts
Ademi & Fruchter LLP
Guri Ademi
Toll Free: (866) 264-3995
Fax: (414) 482-8001