Sep 12, 2024, 3:22 PM
Sep 12, 2024, 2:16 PM

Manitex International faces scrutiny over Tadano deal in September 2024

Highlights
  • Ademi LLP is investigating Manitex International for possible breaches of fiduciary duty related to its transaction with Tadano.
  • In the deal, Manitex shareholders will receive $5.80 per share, with a total transaction value of $223 million, including debt.
  • The investigation raises concerns about the board's actions and whether they are fulfilling their responsibilities to all shareholders.
Story

On September 12, 2024, Ademi LLP announced an investigation into Manitex International, Inc. regarding its recent transaction with Tadano. The investigation focuses on potential breaches of fiduciary duty and other legal violations by Manitex's board of directors. Shareholders are set to receive $5.80 per share in an all-cash deal valued at $123 million, with the total transaction amounting to $223 million when including outstanding debt. Concerns have been raised about the transaction agreement, which reportedly imposes significant penalties on Manitex if it considers competing bids. This clause may limit the company's ability to explore potentially more favorable offers, raising questions about the board's commitment to maximizing shareholder value. Additionally, insiders at Manitex are expected to gain substantial benefits from change of control arrangements, further complicating the situation. The investigation aims to determine whether the board is acting in the best interests of all shareholders or prioritizing the interests of a select few. As the scrutiny unfolds, shareholders and stakeholders are urged to stay informed about the developments. The outcome of this investigation could have significant implications for Manitex's governance and the future of its business dealings, particularly in relation to how it manages potential offers and the fiduciary responsibilities of its directors.

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