Diplomat Pharmacy, Inc. (DPLO)

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Diplomat Pharmacy Shareholders Upset Over Merger Bid (Seek to file Lawsuit)- (via Business Journal)
December 9, 2019
Tags: United States Diplomat UnitedHealth Corporate Affairs Mergers & Acquisitions

A group of Diplomat Pharmacy, Inc. shareholders are attempting to block the $300 million purchase of the company by UnitedHealth Group Inc. Under terms of the definitive merger agreement, UnitedHealth will acquire the outstanding shares of Diplomat common stock for $4 per share.

The deal would represent a hefty discount of approximately 31% to the preceding trading day. The deal is slated to close next year, pending approval by regulators and a majority of Diplomat shareholders.

The shareholders allege that the purchase price of $4 per share is insufficient and that deal-protection clauses in the merger agreement preclude other companies from submitting successful competing offers. In addition, shareholders allege that senior management of Diplomat obtained personal benefits for their own self interests in agreeing to sell the company at that price that are not being shared with common stockholders.

Diplomat's investor relations did not immediately respond to requests for a comment.

To contact the law firm on behalf of shareholders of Diplomat for more information as to how you can participate with other shareholders in seeking a higher price at no cost or expense can call toll free 800.511.7037 or email at [e-mail]

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