Encore Wire Corporation

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Ademi LLP is investigating Encore (Nasdaq: WIRE) for possible breaches of fiduciary duty and other violations of law in its transaction with Prysmian.

In the transaction, Encore stockholders will receive only $290.00 per share or approximately $4.2 billion in implied Enterprise Value. The transaction agreement unreasonably limits competing transactions for Encore by imposing a significant penalty if Encore accepts a competing bid. Encore insiders will receive substantial benefits as part of change of control arrangements.

We are investigating the conduct of Encore’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.