Gateway Shareholders Sue Over Acquisition
With Acer's recent announcement that it would acquire Gateway for $710 million, a price many considered to be well above the market value for Gateway, one would think that shareholders would be happy. Oddly enough, that not only doesn't seem to be the case, but quite the opposite: Some shareholders are suing over the acquisition.
The law suit revolves around certain information not being properly disclosed:
"The Company’s directors breached their fiduciary duties to stockholders by approving the Merger Agreement and the transactions contemplated thereby, including but not limited to the Offer, and claims that these transactions are both unfair and coercive to the public stockholders in a sale of the Company," the lawsuit claims.
The lawsuit goes even further to indicate that "The Company’s directors breached their fiduciary duties by failing to include certain information in the Schedule 14D-9, which purportedly denies the stockholders a fully informed voluntary choice whether to approve the Merger Agreement or seek appraisal."
Probably the most important piece of the puzzle might be why Acer increased their suggested purchase price by over 50% since their 2006 offer to buy Gateway for $450 million was rejected.
The law suit revolves around certain information not being properly disclosed:
"The Company’s directors breached their fiduciary duties to stockholders by approving the Merger Agreement and the transactions contemplated thereby, including but not limited to the Offer, and claims that these transactions are both unfair and coercive to the public stockholders in a sale of the Company," the lawsuit claims.
The lawsuit goes even further to indicate that "The Company’s directors breached their fiduciary duties by failing to include certain information in the Schedule 14D-9, which purportedly denies the stockholders a fully informed voluntary choice whether to approve the Merger Agreement or seek appraisal."
Probably the most important piece of the puzzle might be why Acer increased their suggested purchase price by over 50% since their 2006 offer to buy Gateway for $450 million was rejected.
