Chesapeake (CHSP) Alert: Johnson Fistel Investigates Proposed Sale of Chesapeake Lodging Trust; Are Chesapeake Shareholders Getting a Fair Deal?
SAN DIEGO- PRNewswire —May 6, 2019
Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Chesapeake Lodging Trust (NYSE: CHSP) (“Chesapeake”) breached their fiduciary duties in connection with the proposed sale of the Company to Park Hotels & Resorts Inc. (NYSE: PK) (“Park”).
On May 6, 2019, Chesapeake announced that it had signed a definitive merger agreement with Park. Under the terms of the deal, Chesapeake shareholders will receive $11 in cash and 0.628 of Park share for each Chesapeake share owned. The exchange ratio is equal to $31 per Chesapeake share.
The investigation concerns whether the Chesapeake board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Chesapeake shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration; especially given that one Wall Street analyst has a $36.00 price target on the stock. The 52-week high for Chesapeake was $33.81.
If you are a shareholder of Chesapeake and believe the proposed buyout price is too low or you’re interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.