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Tripp Levy PLLC Investigates Buyout of Health Grades

^{Published on 2010-07-28 07:25:44 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Tripp Levy PLLC announces an investigation into the proposed acquisition of Health Grades, Inc. (NASDAQ: HGRD). On July 28, 2010, Vestar Capital Partners V, L.P. (aVestara) announced that it had entered into a definitive agreement to acquire all of the outstanding shares of HealthGrades for $8.20 per share. The aggregate purchase price for the equity of HealthGrades is approximately $294 million. Under the terms of the agreement, Vestar will commence an all-cash tender offer no later than August 10, 2010.

However, Health Grades may not have adequately shopped itself around before entering into this transaction and, pursuant to this proposed transaction, Vestar may be underpaying for Health Grades, thus unlawfully harming Health Grades shareholders. Indeed, analysts have projected that Health Grades true inherent value is at least $9 per share. Further, executive offices of Health Grades,who beneficially owns approximately 21% of Health Grades outstanding common stock have entered into agreements with Vestar to support the transaction and tender their shares.

The investigation concerns, among other things, whether the consideration to be paid to Health Grades shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of Healh Grades. The investigation further concerns whether the board of directors of Health Grades may have breached their fiduciary duties by not acting in Health Grades shareholders' best interests in connection with the sale process of Health Grades.

If you own Health Grades common stock and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact

Tripp Levy PLLC is a national law firm that specializes in mergers & acquisitions, takeover litigation, shareholder rights, and corporate governance matters in state and federal courts throughout the United States.

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