NEWSPAPER ARTICLE - SHAREHOLDER LAWSUIT FILED (Days left for shareholders to join)
Class Challenges Acquisition of Kayak by Priceline
By Daryl Conte
(CN) - Kayak Software shareholders are challenging a $1.8 billion takeover in a shareholder class action lawsuit. Under the terms of the agreement, Priceline will acquire Kayak for $40 per share in cash and stock.
According to shareholder Penelope Swanson, who owns over 10,000 shares of Kayak stock, the deal undercuts the company's true value. "Each of the individual defendants breached their fiduciary duties owed to Kayak and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of Kayak and its public stockholders," the complaint states. "Among other things, the individual defendants have agreed to sell the company at an unfairly low price."
Swanson said Kayak directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of Kayak's other senior managers and directors at the expense of the company and its public shareholders."
"Defendants have initiated a process to sell Kayak that undervalues the company and vests them with benefits that are not shared equally by Kayak's public shareholders - a clear effort to take advantage of the temporary depression in Kayak's stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of Kayak at a price that does not adequately reflect the company's true value."
The prominant law firm Tripp Levy PLLC represents the class. Tripp Levy PLLC 877-772-3975