Class Challenges Acquisition of Spartech by PolyOne
By STEVE TWEEDY
(CN) - Spartech Corp. shareholders are challenging a $393 million takeover in a shareholder class action lawsuit. Under the merger agreement, Spartech stockholders will receive $2.67 in cash and 0.3167 shares of PolyOne common stock for each share of Spartech common stock
According to shareholder Rakesh Kapur, who owns over 10,000 shares of Spartech stock, the deal undercuts the company's true value. "Each of the individual defendants breached their fiduciary duties owed to Spartech and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of Spartech and its public stockholders," the complaint states. "Among other things, the individual defendants have agreed to sell the company at an unfairly low price."
Kapur said Spartech directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of Spartech's other senior managers and directors at the expense of the company and its public shareholders."
"Defendants have initiated a process to sell Spartech that undervalues the company and vests them with benefits that are not shared equally by Spartech's public shareholders - a clear effort to take advantage of the temporary depression in Spartech's stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of Spartech 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