NEW YORK, June 25, 2009 (GLOBE NEWSWIRE) -- Levi & Korsinsky ("L&K") is investigating the Board of Directors of Specialty Underwriters' Alliance Inc. ("Specialty" or the "Company") (Nasdaq:SUAI) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Tower Group Inc. ("Tower") (Nasdaq:TWGP). Under the terms of the agreement, shareholders of Specialty will receive 0.28 shares of Tower for each share of Specialty they own. The exchange ratio is subject to adjustment based on the 15-day volume weighted average price of Tower shares measured 5 days prior to the close of the transaction. Based on Tower's closing price of $24 on June 19, 2009, the agreement values Specialty shares at $6.72 per share. The price appears unfair given that Specialty has a book value of $8.73 per share. Also, the sales process the Company conducted was flawed because the Company agreed to a non-solicitation provision and a termination fee of $3 million plus up to $1 million in expenses that will all but ensure that no superior offer will ever be forthcoming.
Specialty offers commercial property and casualty insurance products in the United States. The Company had revenues of approximately $153 million for fiscal year 2008 and has approximately $43 million in cash.
If you own common stock in Specialty and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/suai1.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.