A lawsuit was filed by an investor in shares of PLX Technology, Inc. (NASDAQ:PLXT) in effort to stop the proposed takeover and NASDAQ:PLXT stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/02/2014 -- An investor, who currently holds shares of PLX Technology, Inc. (NASDAQ:PLXT) filed a lawsuit in effort to halt the takeover of PLX Technology, Inc. by Avago Technologies Limited for $6.50 per share.
Investors who purchased shares of PLX Technology, Inc. (NASDAQ:PLXT) and currently hold any of those NASDAQ:PLXT shares have certain options and should contact the Shareholders Foundation, Inc. at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:PLXT stockholders by agreeing to sell PLX Technology, Inc.too cheaply via an unfair process to Avago Technologies Limited
On June 23, 2014,Avago Technologies Limited(Nasdaq:AVGO,) and PLX Technology, Inc. (NASDAQ:PLXT) announced that they have entered into an agreement under which Avago Technologies Limited will acquire PLX Technology, Inc. (NASDAQ:PLXT) in an all-cash transaction valued at approximately $309 million, or $293 million net of cash and debt acquired. Under the terms of the agreement a subsidiary of Avago Technologies Limited will commence a tender offer for all of the outstanding shares of PLX Technology, Inc common stock for $6.50 per share in cash.
However, the plaintiff claims that the offer is too low and undervalues PLX Technology, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:PLXT shares at $8.00 per share. Furthermore, PLX Technology, Inc. reported that its annual Total Revenue rose from $100.25 million in 2012 to $104.49 million in 2013 and that its Net Loss of $32.59 million in 2012 turned into a Net Income of $7.14 million in 2013. Shares of PLX Technology, Inc. (NASDAQ:PLXT) grew from $3.54 per share in December 2012 to as high as $6.74 per share in January 2014.
In addition the plaintiff alleges that the process is also unfiar to NASDAQ:PLXT stockholders. Indeed, Potomac Capital Partners II, L.P., which is the largest stockholder of PLX Technology, Inc., certain senior members of the PLX Technology, Inc. management team and all of the directors of PLX Technology, Inc., collectively owning approximately 14.7% of shares outstanding on fully diluted basis have already executed a Tender and Support Agreement in support of the transaction and that Discovery Group I, LLC, the second largest stockholder of PLX Technology, Inc., has informed PLX Technology, Inc. that it supports the transaction.
On June 30, 2014, NASDAQ:PLXT shares closed at $6.47 per share.
Those who are current investors in PLX Technology, Inc. (NASDAQ:PLXT) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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