PMACA Pma Capital Corp. (MM)

Levi & Korsinsky is investigating the Board of Directors of PMA Capital Corporation (“PMA Capital” or the “Company”) (NasdaqGS: PMACA) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Old Republic International Corporation (“Old Republic”) (NYSE:ORI). Under the terms of the transaction, PMA Capital shareholders will receive 0.55 shares of Old Republic common stock in exchange for each outstanding common share of PMA Capital, which exchange rate may be adjusted upwards or downwards depending on the price of Old Republic’s common stock preceding the closing of the merger, but will not exceed 0.60 or be less than 0.50. Based on the prior closing price of Old Republic, the transaction values PMA capital stock at approximately $7.10 per share for a total transaction value of $365 million, including the assumption of debt.

The investigation concerns whether the PMA Capital Board of Directors breached their fiduciary duties to PMA Capital stockholders by failing to adequately shop the Company before entering into this transaction and whether Old Republic is underpaying for PMA Capital shares, thus unlawfully harming PMA Capital stockholders. In particular, PMA Capital shares traded at $7.65 as recently as May 13, 2010, the Company has a book value of $12.97 per share and at least one analyst set a price target for PMA Capital stock at $11.00 per share.

If you own common stock in PMA Capital and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (212) 363-7500 or visit http://www.zlk.com/pma-capital-corporation-pmaca.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.

Pma Capital Corp. (MM) (NASDAQ:PMACA)
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Pma Capital Corp. (MM) (NASDAQ:PMACA)
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