Horizon Lines Under Investigation
- Business & Finance
New York-based national securities firm Faruqi & Faruqi said it is investigating the Board of Directors of Horizon Lines, Inc., for potential breaches of fiduciary duties in connection with the sale of the company to Matson, Inc.
Juan E. Monteverde, a partner at Faruqi & Faruqi, will focus the investigation on whether Horizon’s Board of Directors failed to conduct a fair sales process, and whether and by how much this proposed transaction undervalues the company to the detriment of Horizon’s shareholders.
In a written press release the firm stated that ”the company’s stockholders will only receive USD 0.72 for each share of Horizon common stock they own.”
Last week Horizon said the company entered into definitive agreements for a series of transactions that will result in the sale of the entire company, the first being the sale of its Hawaii business to The Pasha Group, followed by Horizon Lines’ subsequent acquisition by Matson, Inc.
In the same press release Horizon also said that the company will cease providing liner service between the U.S.A. and Puerto Rico by the end of 2014 due to continuing losses without the prospect of future profitability.