SOURCE: Brower Piven, A Professional Corporation

February 16, 2011 18:04 ET

Brower Piven Announces Class Action Lawsuit in Connection With the Acquisition of Danvers Bancorp, Inc. by People's United Financial, Inc.

STEVENSON, MD--(Marketwire - February 16, 2011) - The law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the Court of Chancery of the State of Delaware on behalf of all shareholders of Danvers Bancorp, Inc. ("Danvers") (NASDAQ: DNBK).

The complaint alleges violations of state law by the Board of Directors of Danvers relating to the proposed acquisition of the company by People's United Financial, Inc. ("People's"), the holding company for People's United Bank. The complaint alleges that Danver's Board of Directors breached its fiduciary duties by failing to maximize shareholder value, among other things.

On January 20, 2011, the complaint states, People's and Danvers announced that they entered into a definitive agreement for People's to acquire Danvers in a transaction valued at approximately $493 million. The complaint alleges that under the terms of the agreement, Danvers shareholders will receive either $23 per share in cash or 1.624 shares of People's stock for each share of Danvers, whereby 55% of the company shares will be exchanged for stock and 45% for cash. Following the merger, Danvers shareholders will own approximately 4.8% of the combined company. The complaint alleges that rather than permitting Danvers's shares to trade freely and allowing its shareholders to reap the benefits of Danvers's increasingly positive prospects, organic growth within its loan portfolio, and the overall improvement of the company's net interest margin, the Board of Danvers has acted for its own benefit and the benefit of People's by entering into the merger. Thus, the complaint alleges, the Board has effectively placed a cap on Danvers's corporate value at a time when the company's stock price was poised to capitalize on its positive and encouraging financial outlook. Further, the complaint alleges that Danver's Board agreed to preclusive deal protection devices to ensure that no competing offers will emerge, including a no shop provision, a standstill provision, and a termination fee of up to $19.725 million.

If you are a current owner of shares of Danvers, you may obtain additional information about this lawsuit by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact