NEW YORK, April 1, 2014 /PRNewswire/ — Tripp Levy PLLC, a leading national securities and shareholder rights law firm that represents shareholders throughout the nation, announces that it is investigating the acquisition of SWS Group, Inc. (NYSE: SWS) on behalf of its shareholders. Hilltop Holdings Inc. and SWS announced that they have entered into an agreement providing for the acquisition of SWS by Hilltop. Under the terms of the agreement, SWS shareholders will receive 0.2496 shares of Hilltop common stock and $1.94 of cash, equating to $7.88 per share based on Hilltop’s closing price on March 31, 2014.
Hilltop owns 24% of SWS common stock and the Chairman of Hilltop is also on the board of directors of SWS. The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of SWS and Hilltop for not acting in the SWS shareholders’ best interests in connection with the sale process of SWS. The investigation seeks to determine if there was an adequate auction process and if Hilltop is underpaying for SWS, as well as potential conflicts of interest and self-dealing on the part of Hilltop. Indeed, analysts have projected that SWS going forward inherent value is worth at least $8 per share. The stock traded as high as $8.29 less than 2 months ago and the book value alone of SWS is worth at least $9.57 per share.
If you are a shareholder of SWS and would like additional information regarding this matter, at no cost or expense, please contact us.