National securities firm Faruqi & Faruqi, LLP, Saturday said it is investigating the board of Georgia Gulf Corp. (GGC) for potential breaches of fiduciary duties in connection with their conduct related to the proposed sale of the company to Westlake Chemical Corp. (WLK) in an all-cash deal valued at about $1.1 billion.
Faruqi & Faruqi represents investors and individuals in class action litigation.
On Friday, Westlake Chemical made an unsolicited offer to buy rival chemical company Georgia Gulf Corp. for $30.00 per share in cash. Based on Georgia Gulf's 34.24 million shares outstanding as of September 30, 2011, the offer is valued at about $1.03 billion, and the offer price represents a 22.55 percent premium to Georgia Gulf's closing stock price of $24.48 on Thursday.
Houston, Texas-based Westlake Chemical had first made the offer in September, but made it public now because of continued rejection of the offer and unwillingness to engage in substantive discussions by Georgia Gulf. Westlake has already acquired about 4.8% of Georgia Gulf's outstanding shares.
Westlake shares closed Friday's regular trading at $53.87, up 5.13 percent, on the NYSE.
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