While UnitedHealth Group Inc. (NYSE:UNH) has acquired Catamaran Corp (USA) (NASDAQ:CTRX), the latter is under the investigation lens of Brodsky & Smith, LLC. The lawyers of this firm lately announced that Catamaran is under the microscope because they are probing the claims regarding breach of the Board of Director’s fiduciary duty. At the same time, the company is being investigated in relation to other claims such as violation of the U.S. laws in context with sale of company to OptumRX, Inc. (belonging to UnitedHealth).
Did Catamaran easily accept the deal?
As per the conditions of the deal, the shareholders of Catamaran will merely get $61.50 in the form of cash for every company’s stock that they possess. Brodsky & Smith, LLC lawyers are concerned whether or not the Board of this company fulfilled the fiduciary duties pertaining to the stockholders. They are also looking at another angle. The lawyers will find out whether Catamaran negotiated regarding this deal properly or did they just easily give in to the deal, before entering the transaction and agreeing to the terms. Also, it shall be checked if OptumRX underpaid for acquiring Catamaran or not.
Underpaying Catamaran even when it is in a robust growth position?
It is still doubtful whether the company has been underpaid by OptumRX or not, because the strong financial condition as well as robust growth of revenue values Catamaran higher. The company is performing well, has reasonable levels of debt, increased share price in the market throughout the previous year, well-growing net income and robust growth of earnings per share.
Additionally, the business of this company will flourish because of the old U.S. population, increase in life expectancy, rising costs of Pharma and prevalence of the acute and chronic ailments. A research analyst has also set its target on company’s stock at $66.00 apiece.