Arca Capital, one of the largest shareholders of AmTrust Financial Services, Inc., has retained counsel in its continuing campaign to prevent what it sees as an absurdly low-priced buyout of minority shareholders by the Zyskind/Karfunkel family. Carl Stine of Wolf Popper LLP, who specializes in challenging merger and acquisition transactions, will represent Arca Capital, the company announced in a release.
In accordance with Delaware law, Arca Capital has already sent a written demand for appraisal to AmTrust’s management. Should shareholders vote to approve the buyout at the June 21 Special Meeting, Arca Capital intends to proceed with exercising its appraisal rights through the Delaware Court of Chancery, the release said.
The Central Europe-based investment firm contends the fair value of AmTrust is approximately double the current $14.75 per share amended offer price and has sent a written demand for appraisal to management.
“Neither the $13.50 per share offer nor the amended $14.75 per share offer represents anywhere near fair value for the firm. We urge shareholders to vote no on the privatization transaction amended $14.75 offer,” Arca Capital Chairman Pavol Krúpa said in the release.
“The Zyskind/Karfunkel family knows well that the long term price target of AmTrust is between $25 and $31 per share thus they will continue to increase their offers, as they have done twice before, IF shareholders reject this lowball offer. Arca Capital will accept nothing less than fair value for its shares and urges other shareholders not to do so either,” Krúpa added.