SHAREHOLDER CLASS ACTION SUIT SEEKS TO BLOCK HP-3COM MERGER

[Anonymous]

http://www.washingtonpost.com/wp-dyn/content/article/2009/11/16/AR2009111600915.html
SHAREHOLDER CLASS ACTION SUIT SEEKS
TO BLOCK HP & 3.COM MERGER
Networking
and security services provider  3Com got hit by a shareholder class
action suit seeking to block the $2.7 billion merger agreement with HP
that was announced last week. The core allegation: 3Com was sold off too
early, for too little.The plaintiff in this case, New York bankruptcy
lawyer David Shaev, filed the action last Thursday in a Delaware Court,
claiming the proposed agreement ¿ which involves HP paying stockholders
of 3Com $7.90 a share ¿ constitutes a breach of 3Com’s fiduciary duties
owed to public shareholders. He argues that 3Com’s directors should have
pushed for a higher price.The complaint, which names the entire
company’s board of directors, alleges the defendants are attempting to
deceive 3Com shareholders and unfairly deprive them of the true value of
their investment in the company.The acquisition ¿ which was clearly
leaked ¿ is currently awaiting approval from regulators as well as 3Com
stockholders. The transaction is expected to close in the first half of
2010.Should the merger indeed be completed without a hitch, the class
action will seek damages caused by the alleged breach of fiduciary
duties.

[Author]

November 17, 2009 at 10:49 AM