SAN DIEGO, Aug. 26, 2016 /PRNewswire/ -- Shareholder rights
law firm Johnson & Weaver, LLP has launched an investigation
into whether the board members of Rackspace Hosting, Inc. (NYSE:
RAX) breached their fiduciary duties in connection with the
proposed sale of the Company to affiliates of Apollo Global
Management, LLC. Rackspace provides managed cloud services in the
business information technology (IT) market worldwide.
On August 26, 2016, Rackspace
announced it had signed a definitive merger agreement with Apollo.
Under the terms of the agreement Rackspace shareholders will
receive $32.00 per share in cash. The
investigation concerns whether the Rackspace board failed to
satisfy their duties to the Company shareholders, including whether
the board adequately pursued alternatives to the acquisition and
whether the board obtained the best price possible for Rackspace
shares of common stock. Nationally recognized Johnson &
Weaver is investigating whether the proposed deal price represents
adequate consideration; especially given that the price
target for one Wall Street analyst is $44.00. The 52-week high for Rackspace
stock is $32.14.
If you are a shareholder of Rackspace and believe the
proposed buyout price is too low or you're interested in learning
more about the investigation or your legal rights and remedies,
please contact lead analyst Jim
Baker (jimb@johnsonandweaver.com) at 619-814-4471. If
emailing, please include a phone number where you can be
reached.
About Johnson & Weaver, LLP:
Johnson &
Weaver, LLP is a nationally recognized shareholder rights law firm
with offices in California,
New York and Georgia. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits. For more information about the firm and its
attorneys, please visit http://www.johnsonandweaver.com. Attorney
advertising. Past results do not guarantee future outcomes.
Contact:
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
jimb@johnsonandweaver.com
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SOURCE Johnson & Weaver, LLP