| Levi & Korsinsky LLP Investigates Board of Virgin Mobile USA, Inc. |
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| Written by Globe NewsWire | |
| Wednesday, 29 July 2009 | |
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New York, New York - Levi & Korsinsky is investigating the Board of Directors of Virgin Mobile USA, Inc. ("Virgin Mobile" or the "Company") (NYSE:VM) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Sprint Nextel Corp. ("Sprint") (NYSE:S). Under the terms of the agreement, each Virgin Mobile shareholder will receive Sprint shares having a 10-day average closing price equivalent to $5.50 per Virgin Mobile share for a total equity value of approximately $483 million.
Sprint already owns approximately 13.1% of Virgin Mobile which uses Sprint's cellular network to offer its services. Also, Sprint has entered into voting agreements that, together with the Virgin Mobile shares it owns, comprise approximately 40% of the outstanding voting power of Virgin Mobile. In addition, the Company agreed to refrain from soliciting competing offers that may be superior than the Sprint offer and also agreed to pay Sprint a termination fee of $14.2 million in the event the agreement is terminated under certain circumstances that will all but ensure that no superior offer will ever be forthcoming. The companies expect to consummate the transaction in the fourth quarter of 2009 or in early 2010, subject to customary closing conditions, including all necessary regulatory and stockholder approvals. If you own common stock in Virgin Mobile and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/vm1.html. Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. Levi & Korsinsky, LLP |
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