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

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

 user 2009-11-17 at 10:49:51 am Views: 62
  • #22949

    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.