The law firm of Federman & Sherwood has initiated an investigation into
NetSpend Holdings, Inc. (NASDAQ: NTSP) (“NetSpend”) with respect to
possible breaches of fiduciary duty by the company’s officers and
directors, as well as violations of state law, in connection with the
purchase offer by Total System Services, Inc. (NYSE: TSS) (“TSYS”).
On February 19, 2013, NetSpend announced that it had agreed to be
acquired by TSYS, whereby TSYS would acquire all outstanding shares of
NetSpend common stock in a cash offer of approximately $16.00 per
NetSpend share, or approximately $1.4 billion. According to Bloomberg,
this merger is being supported by JLL Partners, Inc., a 38% shareholder
of NetSpend, as JLL has agreed to vote in favor of the deal, which may
not necessarily be in the best interests of non-insider shareholders.
Given NetSpend’s long-term, improving financial outlook, this merger
limits prospective bids by other purchasers by imposing a termination
penalty should NetSpend receive and accept a higher bid. If approved,
this transaction is expected to close in mid-2013, subject to regulatory
approval and approval by NetSpend shareholders.
Federman & Sherwood is investigating whether: (1) the information being
provided to NetSpend shareholders makes all necessary disclosures with
respect to the proposed sales transaction; (2) whether the proposed sale
to TSYS offers adequate long-term value to NetSpend shareholders given
NetSpend’s current, improving financial condition; and, (3) whether
NetSpend could have received a higher per share price for its
shareholders had the officers and directors aggressively sought other
purchasers for the company.
If you currently own common stock in NetSpend, Inc. and purchased your
shares before February 19, 2013, have information to assist in our
investigation of this transaction; or, have any questions or concerns
regarding this notice or preservation of your rights, please contact
William B. Federman. Federman & Sherwood has extensive nationwide
experience in representing investors in securities, derivative and
merger-related shareholder class actions, and has been appointed as lead
counsel in multiple complex cases.