Several law firms have issued press releases announcing their investigations of XETA Technologies' (XETA) agreement to sell itself to PAETEC Holding Corporation.
Here's one with some links to others.
My thoughts are as follows:
- The $5.50 per share purchase price strikes me as a fair one.
- XETA's Chairman owns lots of the stock. Another major holder is someone I respect. And if these and other significant stockholders raise objections, I may change my mind. So far I've heard nothing.
- I basically have a very low opinion of most "class action" lawsuits. We may very well be witnessing the latest example of legal ambulance chasing.
Of course, events are fluid and my view could very well change with them over the next days or even weeks.
I've noticed XETA shares haven't been trading at $5.50 or higher. They've been lower. If they reach and stay at $5.50 I might go ahead and sell. Otherwise, I'll vote my shares with management and take the $5.50 in cash, assuming the deal goes ahead an announced.
In the meantime, I'll keep an eye on this and report anything of note on the blog.