Levi & Korsinsky, LLP Announces Investigation of Acquisition of Bluelinx Holdings Inc. by Majority Shareholder
Levi & Korsinsky is investigating the Board of Directors of Bluelinx Holdings Inc. and its majority shareholder, Cerberus ABP Investor LLC, for possible breaches of fiduciary duty and other violations of state law.
- New York, NY (1888PressRelease) July 23, 2010 - Levi & Korsinsky is investigating the Board of Directors of Bluelinx Holdings Inc. ("Bluelinx" or the "Company") (NYSE: BXC) and its majority shareholder, Cerberus ABP Investor LLC ("CAI"), for possible breaches of fiduciary duty and other violations of state law in connection with CAI's announcement that it intends to commence a tender offer for all of the outstanding publicly held shares of BlueLinx that it does not already own. Under the terms of the tender offer, Bluelinx shareholders will receive $3.40 in cash for each Bluelinx share of common stock they own. Based on shares outstanding as of May 7, 2010, CAI currently owns 55.39% of the outstanding common stock of BlueLinx. In a letter sent to the Board of Directors of BlueLinx, CAI stated that it has no current interest in selling its stake in BlueLinx nor would it currently expect, in its capacity as a stockholder, to vote in favor of any alternative sale, merger or similar transaction.
The investigation concerns whether the Bluelinx Board of Directors breached their fiduciary duties to Bluelinx stockholders and whether CAI is underpaying for Bluelinx shares, thus unlawfully harming Bluelinx stockholders. In particular, Bluelinx stock traded at $6.32 per share as recently as April 26, 2010 and at least one analyst set a price target for Bluelinx stock at $5.00 per share.
If you own common stock in Bluelinx and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi ( @ ) zlk dot com or by telephone at (212) 363-7500 or visit http://www dot zlk dot com/bluelinx-holdings-bxc dot html dot
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.
CONTACT:
Levi & Korsinsky, LLP
Joseph Levi, Esq.
Eduard Korsinsky, Esq.
30 Broad Street - 15th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com
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