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Parthenon Capital’s White River deal under investigation by law firm

20 Nov 2012

Parthenon Capital Partners’ acquisition of automotive finance business Coastal Credit’s parent White River Capital is being investigated by a law firm over claims it short-changed investors in the company.

Kirby McInerney said it is looking into whether the White River board of directors violated their fiduciary duties by agreeing to the $79.5m deal, equivalent to $21.93 per share.

That figure is less than the $21.99 per share investors could have received for their shares as recently as November 12, the firm said, adding it was also significantly below the $27.11 price shares hit less than a year ago.

The Parthenon offer represented a one per cent premium on White River’s closing price the day before the deal was announced.

White River expects to hold a special meeting of shareholders to consider the proposed purchase by Parthenon, but is yet to set a date.

Parthenon has about $2bn of capital under management, and roughly 30 employees across its Boston and San Francisco offices.

It focuses on mid-market companies with enterprise values of between $50m and $500m.

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