The Shareholders Foundation announced that an investigation on behalf of investors, who currently hold shares of City National Corp (NYSE:CYN), was initiated concerning whether the takeover of City National Corp. by Royal Bank of Canada for a value of $93.80 per share is unfair to NYSE:CYN stockholders.
Investors who purchased shares of City National Corp (NYSE:CYN) and currently hold any of those NYSE:CYN shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain officers and directors of City National Corp breached their fiduciary duties owed to NYSE:CYN investors in connection with the proposed acquisition.
On January 22, 2015, City National Corp (NYSE:CYN) and Royal Bank of Canada (TSX:RY) (NYSE:RY) announced an agreement by which Royal Bank of Canada will acquire all outstanding shares of City National Corp. Total consideration is valued at approximately $5.4 billion at announcement, or approximately $93.80 per City National share, comprised of a mix of cash and common stock, based on RBC’s closing stock price on January 21, 2015.
However, given that at least one analyst has set the high target price for NYSE:CYN shares at $94.00 per share, the investigation concerns whether the offer is unfair to NYSE:CYN stockholders.
In addition, given that as part of the transaction, the Goldsmith family stockholders have already agreed to vote their City National holdings in favor of the transaction and to hold at least 50 percent of the RBC common shares received by them in the transaction until the third anniversary of closing, the investigation concerns whether the City National Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders’ best interests in connection with the proposed sale.
City National Corp reported that its Net Income increased from $131.18 million in 2010 to $230.01 million in 2013. Shares of City National Corp (NYSE:CYN) grew from $37.76 per share in September 2011 to as high as $82.34 in late December 2014.
On January 30, 2015 NYSE:CYN shares closed at $86.69 per share.
Those who are current investors in City National Corp shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com