NewStar Financial (NEWS) Alert: Johnson Fistel Investigates Proposed Sale of NewStar Financial, Inc.; Are Shareholders Getting a Fair Deal?

SAN DIEGO, Oct. 17, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of NewStar Financial, Inc. (NASDAQ: NEWS) ("NewStar") breached their fiduciary duties in connection with the proposed sale of the Company to First Eagle Investment Management ("First Eagle"). NewStar operates as a commercial finance company in the United States.

On October 17, 2017, NewStar announced that it had signed a definitive merger agreement with First Eagle. Under the terms of the deal with First Eagle, NewStar stockholders are expected to receive total consideration estimated at $12.32 to $12.44 per share. NewStar stockholders will receive $11.44 in upfront cash and one non-transferable contingent value right (CVR) for each NewStar share held at the closing of the transaction, NewStar estimates the CVR is valued between $.88 to $1.00 per share.

The investigation concerns whether the NewStar 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 NewStar shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal price represents adequate consideration, especially given one Wall Street analyst has a $14.00 price target on the stock.

If you are a shareholder of NewStar and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.

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 http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com

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SOURCE Johnson Fistel, LLP