CapitalSource Investor Wants $2.3B PacWest Merger Blocked

Law360, Wilmington (August 2, 2013, 5:55 PM EDT) -- A CapitalSource Inc. investor launched a putative class action Thursday aimed at halting the commercial lender's $2.3 billion merger with PacWest Bancorp, claiming the deal shortchanges shareholders of the growing company.

Filed in Delaware Chancery Court, the complaint accuses CapitalSource's nine-member board of breaching its fiduciary duty by approving a transaction that ignores the best interests of shareholders.

“The merger consideration is insufficient and fails to account for the company’s remarkable growth and significant cash reserves,” shareholder John Fosket said.

Announced July 22, the proposed merger...
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