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Law Offices of Howard G. Smith Announces Investigation on Behalf of Shareholders of CPI International, Inc.

^{Published on 2010-05-10 19:20:55 - Market Wire}
 

BENSALEM, Pa.--([ BUSINESS WIRE ])--Law Offices of Howard G. Smith announces that it is investigating potential claims against the board of directors of CPI International, Inc. (aCPIa or the aCompanya) (Nasdaq:CPII) related to the Companya™s agreement to be acquired by Comtech Telecommunications Corp. (aComtecha). The proposed cash-and-stock transaction is valued at approximately $472.3 million.

Under the terms of the definitive merger agreement entered into by the parties, CPI shareholders will receive for each share of the Companya™s stock they own a combination of $9.00 in cash plus a fraction of Comtech common stock equal to $8.10 divided by the average closing price of Comtech common stock over a specified period of time prior to closing, provided that the fraction shall not be greater than 0.2382 nor less than 0.2132. Based on the May 7, 2010, closing price of Comtech stock, which was $31.06, the fraction was equal to 0.2382 and was currently valued at $7.40 per CPI share. Accordingly, the proposed transaction values CPI stock at approximately $16.40 per common share. The investigation concerns possible breaches of fiduciary duty and other violations of law related to approval of the transaction by CPIa™s board of directors.

If you own shares of CPI, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to [ howardsmith@howardsmithlaw.com ], or visit our website at [ http://www.howardsmithlaw.com ].