The Ademi Firm is investigating Olympic Steel (NASDAQ: ZEUS) for possible breaches of fiduciary duty and other violations of law in its transaction with Ryerson.
In the transaction, Olympic Steel shareholders will receive 1.7105 Ryerson shares for each Olympic Steel share and will own approximately 37% of the combined entity. Olympic Steel insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Olympic Steel by imposing a significant penalty if Olympic Steel accepts a competing bid. We are investigating the conduct of the Olympic Steel board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.