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Kendall Law Group Investigates CPI International, Inc. Merger for Shareholders

^{Published on 2010-05-10 15:15:19 - Market Wire}
 

DALLAS--([ BUSINESS WIRE ])--[ Kendall Law Group ], a national securities firm, is investigating CPI International, Inc. (NASDAQ: CPII) for shareholders in connection with the proposed sale of CPI International to Comtech Telecommunications Corporation. The firma™s investigation seeks to determine whether CPI International and its Board breached their fiduciary duties by entering into the agreement without properly shopping for a deal that would provide better value for shareholders. If you are a CPI International shareholder and would like additional information about your rights, contact the Kendall Law Group at 877-744-3728 or by email at [ skendall@kendalllawgroup.com ].

The companies announced on May 10, 2010 that they had entered into an agreement for CPI to be acquired by Comtech for approximately $472.3 million (including assumption of debt). According to the agreement, CPI shareholders will receive $9.00 in cash and a fraction of Comtech common stock equal to $8.10. CPI stock closed at $14.55 on April 26, 2010 and traded as high as $20.69 on May 4, 2007. CPI International was scheduled to announce its second quarter financial results at the close of the market on May 13, 2010, but cancelled the announcement citing the merger agreement. In addition, Communication and Power Industries, Inc., a subsidiary of CPI, was awarded a five-year indefinite-delivery/indefinite-quantity contract on April 5, 2010 to support the U.S. Navy's Commercial Broadband Satellite Program. Due to these factors, the firm believes the transaction undervalues the company.

Kendall Law Group was founded by a former federal judge, includes a former United States Attorney, prosecutors and securities lawyers who are experienced in complex securities litigation. The firm has been counsel in dozens of merger and acquisition cases nationwide, including some of the largest transactions in the United States.