Sillerman Takes SFX Private

At the same time, Boston law firm Block & Leviton announced it is investigating the agreement made by the SFX board of directors, in order to determine if it “breached their fiduciary duties by failing to maximize shareholder value in the potential acquisition and the process by which the directors considered and approved the transaction,” according to a press release.

The SFX board unanimously approved the deal, on recommendation of a special committee appointed to consider the Sillerman offer as well as any others.

The price is a premium of 42 percent above SFX’s closing price of $3.70 on Feb. 24, the last trading day before the announcement of Sillerman’s acquisition offer, according to Business Wire.

However, Block & Leviton say SFX traded above $5.25 per share as recently as October.

“The proposed transaction appears to benefit the CEO, Mr. Sillerman, at the expense of Company shareholders,” the law firm said.