Newton Independent
Two New York City-based securities law firms announced they plan to launch investigations into the actions of the board of directors of Iowa Telecom for possible breach of fiduciary duties concerning the planned $1.1 billion sale of the Newton-based telecommunications firm to Arkansas-based Windstream Corporation.
Press releases put out by Levi & Korsinsky and Stull, Stull & Brody after today's sale announcement indicate the firms are looking for breaches of fiduciary duty or other violations of state law in connection with the board of directors' attempt to sell the company to Windstream.
The investigation will concern whether the board of directors of Iowa Telecom failed to adequately "shop" the company before entering into the transaction and whether Windstream is underpaying for Iowa Telecom shares, potentially harming stockholders.
Stockholders interested in pursing the action are asked to contact the firms.
In related news concerning the sale, Windstream is reporting that Iowa Telecom CEO Alan L. Wells will be joining the company's board of directors.
"I also am pleased to have Alan join our company's board of directors," said Jeffrey Gardner, Windstream's chief executive officer. "His financial acumen and executive management experience will be a tremendous asset."
That story can be read here.
Shares of Iowa Telecom were up as much as $3.21 in trading today to $15.90 with nearly 6 million shares traded.
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