Law firm investigates Gander Mountain board

New York City Levi & Korsinsky said Wednesday it is investigating the board of directors of Gander Mountain Co. for possible breaches of fiduciary duty and other violations of state law in connection with the announced going-private transaction.

Under the terms of the transaction, the company's two largest shareholders, Gratco LLC and Holiday Stationstores, will pay Gander Mountain shareholders who have less than 30,000 shares about $5.15 per share while shareholders holding more than 30,000 shares will retain their shares and not be paid for them.

According to the firm, the investigation concerns whether the Gander Mountain board of directors breached their fiduciary duties to Gander Mountain shareholders given that the company's shares traded at $6.49 as recently as June 29, and the company has a book value in excess of $6.37 per share. The going-private transaction is expected to close in early 2010.