A lawsuit was filed by an investor in shares of Emulex Corporation (NYSE:ELX) in effort to stop the proposed takeover and NYSE:ELX stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 03/11/2015 -- An investor, who currently holds shares of Emulex Corporation (NYSE:ELX), filed a lawsuit in effort to stop the proposed takeover of Emulex Corporation by Avago Technologies Limited.
Investors who purchased shares of Emulex Corporation (NYSE:ELX) and currently hold any of those NYSE:ELX shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:ELX stockholders by agreeing to sell Emulex Corporation too cheaply via an unfair process to Avago Technologies Limited.
On February 25, 2015, Avago Technologies Limited and Emulex Corporation (NYSE:ELX) announced that they have entered into an agreement under which Avago Technologies will Emulex Corporation (NYSE:ELX), in an all-cash transaction valued at approximately $606 million, or $609 million net of cash and debt acquired. Under the terms of the agreement a subsidiary of Avago Technologis will commence a tender offer for all of the outstanding shares of Emulex Corporation (NYSE:ELX) common stock for $8 per share in cash.
However, the plaintiff claims that the proposed consideration NYSE:ELX shareholders will receive is grossly inadequate and undervalues Emulex Corporation. Shares of Emulex Corporation (NYSE:ELX) traded in July 2013 as high as $8.28 per share and in early 2012 as high as $11.01 per share.
In addition, the plaintiff claims that the process is also unfair to NYSE:ELX stockholders. Indeed, certain senior members of the Emulex management team and all of the directors of Emulex, collectively owning approximately 2.5 percent of Emulex's outstanding shares have already executed Tender and Support Agreements in support of the transaction.
On March 9, 2015, Emulex Corporation shares closed at $7.97 per share.
Those who are current investors in Emulex Corporation (NYSE:ELX) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego