Towers Watson shareholders to sue over Willis merger

The $18 billion merger of broker Willis and professional services company Towers Watson has sparked a class action from a group of Towers Watson shareholders.

A class action has been commenced in Delaware state court challenging the fairness of the merger.

Law firm Levi & Korsinsky said the investigation will look into whether the board of Towers Watson breached its fiduciary duties to stockholders by failing to adequately shop the company before agreeing to enter into this transaction. It is also looking to determine whether Willis is underpaying for Towers Watson.

If approved, Willis will also implement a 2.6490 for one reverse stock split, which means Willis share will be converted into 0.3775 shares of the post-merger entity. If this is approved, Towers Watson shareholders will receive one share of the post-merger entity for each Towers Watson share they own.

Towers Watson shareholders will own approximately 49.9 percent of the combined company.