Robbins Umeda LLP Announces an Investigation of PAETEC Holding Corporation

Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of PAETEC Holding Corporation (NASDAQ: PAET) in connection with their efforts to sell the company to Windstream Corporation (NASDAQ: WIN).

If you own stock in PAETEC and would like more information about your shareholder rights, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or via the shareholder information form on the firm's website.

On August 1, 2011, PAETEC announced that it had entered into a definitive merger agreement under which Windstream will acquire all outstanding shares of the company in a stock transaction. Under the terms of the agreement, PAETEC shareholders will receive only 0.46 shares of Windstream for each share of PAETEC they own. Based on Windstream's July 29, 2011 closing price, PAETEC shareholders can expect to receive the monetary equivalent of $5.62 per share. The transaction is expected to close in the next six months.

Robbins Umeda LLP's investigation focuses on whether PAETEC'S board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent positive financial results. On May 5, 2011, PAETEC announced first quarter results for fiscal year 2011 that exceeded analyst expectations. The company reported $495.5 million in revenue for the quarter, beating consensus estimates of only $493 million for the same period. Additionally, the company reported an adjusted EBITDA of $91.4 million on a margin of 18.4%, beating estimates of $88.7 million on a margin of 18.0%. Finally, leading financial analysts have released target prices for PAETEC that value the company's stock at $7.00 per share, considerably higher than the value being offered by Windstream as a part of the merger agreement.

Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career shareholder rights attorneys. Robbins Umeda LLP has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.

Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/paetec-holding-corp/

Attorney Advertising. Past results do not guarantee a similar outcome.