Ademi LLP is investigating AvalonBay (NYSE: AVB) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with NextEra Energy.
AvalonBay stockholders will receive 2.793 shares of Equity Residential common stock for each share of AvalonBay common stock owned. Upon closing, AvalonBay shareholders will own only approximately 51.2% and Equity Residential shareholders will own approximately 48.8% of the combined company on a fully diluted basis.
The transaction agreement unreasonably limits competing transactions for AvalonBay by imposing a significant penalty if AvalonBay accepts a competing bid. We are investigating the conduct of the AvalonBay board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
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