Dallas, Texas 05/05/2014 (FINANCIALSTRENDS) – The stock of Pepco Holdings, Inc. (NYSE:POM) was under scanner on Friday, May 2, 104 for unusual trade volumes of 14.35 million shares against its 30 day average trade volume of 5.96 million shares. The stock marginally gained 0.19% on Friday and closed at $26.98. The stock is currently trading near its recent 52 week high of $27.04 and its previous closing it was about 40.54% above its 200 day simple moving average.
Investigation into Proposed Sale:
Recently a leading law firm, Johnson & Weaver, LLP announced to have launched an investigation into Pepco Holdings, Inc. (NYSE:POM)’s proposed sale to Exelon Corporation (NYSE:EXC) for approximately $6.8 billion. The firm is investigating about potential role of Pepco Holdings’ board members for alleged breach of their fiduciary duties in connection with the proposed sale. The firm has requested Pepco Holdings’ shareholders to contact for any further information.
The law firm will also investigate whether the Pepco Holding’s directors fairly considered all possible alternatives to the proposed sale, such as pursuing a deal with another company or even as continuing on as an independent company.
Another law firm, Levi & Korsinsky also announced an investigation for certain violations of state law and breaches of fiduciary duty against the Board of Directors of Pepco Holdings in connection with the proposed sale.
About the Proposed Sale:
Pepco Holdings, Inc. (NYSE:POM) and Exelon Corporation (NYSE:EXC) entered into an agreement on April 30, 2014 whereby Exelon will be acquiring Pepco Holdings and the acquisition is anticipated to complete around 3Q15. Under the proposed terms, Pepco shareholders will receive $27.25 per share.
Scott Holleman, Johnson & Weaver attorney, commented, “Pepco is a valuable company that has recently reported outstanding financial results across the board. Pepco’s directors were required to do everything they could to maximize shareholder value, and we don’t think that the $27.25 per share deal price is adequate.”