A lawsuit was filed by an investor in shares of Entropic Communications, Inc. (NASDAQ:ENTR) in effort to stop the proposed takeover and NASDAQ:ENTR stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/17/2015 -- An investor, who currently holds shares of Entropic Communications, Inc. (ENTR), filed a lawsuit in effort to stop the proposed takeover of Entropic Communications, Inc. by MaxLinear for a value of approximately $3.01 per share.
Investors, who purchased shares of Entropic Communications, Inc. (NASDAQ: ENTR) prior to February 3, 2015, and currently hold any of those NASDAQ: ENTR shares, have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ENTR stockholders by agreeing to sell Entropic Communications, Inc. too cheaply via an unfair process to MaxLinear, Inc.
On February 3, 2015 MaxLinear, Inc. (NYSE:MXL) and Entropic Communications, Inc. (NASDAQ ENTR) announced that they have signed an agreement for MaxLinear, Inc to acquire Entropic Communications, Inc. Under the terms of the proposed transaction Entropic Communications, Inc. (NASDAQ ENTR) shareholders will receive $1.20 per share in cash and (0.2200 shares of MaxLinear, Inc. (NYSE:MXL common stock for each Entropic common share outstanding. Based on MaxLinear's closing stock price on February 2, 2015, the merger consideration is valued at approximately $3.01 per Entropic Communications, Inc. (NASDAQ ENTR) share.
However, the plaintiff claims that the proposed consideration NASDAQ:ENTR shareholders will receive is grossly inadequate and undervalues Entropic Communications, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:ENTR shares at $5.00 per share and NASDAQ:ENTR shares traded in early 2014 as high as $4.74 per share. In addition, the plaintiff claims that the process is also unfair to NASDAQ:ENTR stockholders.
Those who are current investors in Entropic Communications, Inc. (NASDAQ:ENTR) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com