After the announcement of Apollo Global Management acquiring Rackspace for $32 per share, at least five different law firm believes the deal may be undervaluing Rackspace and is exploring possible claims against the Board of Directors of Rackspace. The different law firms cite either the offer of $32 per share is too low, question whether or not the Board of Directors of Rackspace looked at alternative options, and an analyst that had a price target of $44 per share.
The law firm Powers Taylor LLP and former United States SEC attorney Willie Briscoe, believes Rackspace may be worth up to an estimated $44 per share. Both law firms cite a Yahoo! Finance analyst that has a estimated value of $44 per share for Rackspace.
In Louisiana the law firm Kahn Swick & Foti, LLC and the former Attorney General of Louisiana also want to talk to shareholders of Rackspace. The San Diego office of Johnson & Weaver, LLP is also looking into whether the $32 per share price is too low. Johnson & Weaver, LLP cites that the 52 week high of the stock was $32.14 and the price target of $44 per share, by one analyst as s concern. Lastly, Rigrodsky & Long, P.A. is also looking into whether or not the price was too low and the board failed to obtain the best possible value for shareholders.