SAN DIEGO, Oct. 16, 2020 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of CIT Group Inc. (NYSE: CIT) ("CIT") breached their fiduciary duties in connection with the proposed sale of the Company to First Citizens BancShares, Inc. (NASDAQ: FCNCA) ("First Citizens").
On October 16, 2020, CIT announced that they had entered into a definitive merger agreement with First Citizens. Under the terms of the deal, CIT stockholders will receive 0.0620 shares of First Citizens class A common stock for each share of CIT common stock they own. First Citizens stockholders will own approximately 61%, and CIT stockholders will own approximately 39% of the combined company. Based on First Citizens' closing stock price on October 15, 2020, the implied stock consideration to be received by CIT's stockholders is $21.91 per share.
CIT shareholders will be subject to the future price fluctuation of First Citizens' stock price.
The investigation concerns whether the CIT board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for CIT shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given analysts' projections for future earnings and revenue growth; also, one Wall Street analyst has a $36.00 price target on the stock. The 52-week high for CIT was $48.96.
If you are a shareholder of CIT and believe the proposed buyout price is too low or you're interested in learning more about the investigation, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
SOURCE Johnson Fistel, LLP