Levi & Korsinsky is investigating the Board of Directors of Cellu Tissue Holdings, Inc. (“Cellu Tissue” or the “Company”) (NYSE: CLU) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Clearwater Paper Corp.
New York, NY, September 17, 2010 — Levi & Korsinsky is investigating the Board of Directors of Cellu Tissue Holdings, Inc. (“Cellu Tissue” or the “Company”) (NYSE: CLU) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Clearwater Paper Corp. (“Clearwater Paper”) (NYSE: CLW). Under the terms of the transaction, Cellu Tissue shareholders will receive $12 in cash for each share of Cellu Tissue common stock they own for a total transaction value of approximately $502 million, including assumed debt. Cellu Tissue’s Chief Executive Russell Taylor and its largest shareholder, private equity firm Weston Presidio V. L.P., together own about 56 percent of the company’s stock and have agreed to vote in favor of the deal.
Cellu Tissue went public in January 2010 at $12.30 a share and at least one analyst has set a price target for Cellu Tissue stock at $16.00 per share. The investigation concerns whether the Cellu Tissue Board of Directors breached their fiduciary duties to Cellu Tissue stockholders by failing to adequately shop the Company before entering into this transaction and whether Clearwater Paper is underpaying for Cellu Tissue shares, thus unlawfully harming Cellu Tissue stockholders.
If you own common stock in Cellu Tissue and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (212) 363-7500 or visit http://www.zlk.com/cellutissue-clu.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.
CONTACT: Levi & Korsinsky, LLP, Joseph Levi, Esq., Eduard Korsinsky, Esq., 30 Broad Street – 15th Floor, New York, NY 10004, Tel: (212) 363-7500, Fax: (212) 363-7171, www.zlk.com
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Contact:
Jared Morine
Levi & Korsinsky, LLP
30 Broad Street, 15th Floor
New York, NY 10004
212-363-7500
[email protected]
