A DirecTV investor sued to block AT&T Inc. (T)’s $48 billion takeover of the largest U.S. satellite-television company, calling the offer “inadequate.”
Under the terms of the deal announced this month, AT&T will pay $95 for each share of DirecTV, split between $28.50 in cash and the equivalent of $66.50 in stock.
“Given the fact that the company was poised for significant future growth and success, the value of DTV stock is being significantly undervalued in the proposed acquisition,” investor David Rivera said in a complaint filed today in Delaware Chancery Court.
Its really sad and frustrating that in the current ligatious climate, every time a company announces bad results, even in a bad economy, law firms come out of the word work to sue and everytime a merger is announced it seems that law firms come out of the work work to sue contenting the offer is inadequate and there is a breach of fiduciary duty. Having been an unwilling participant in many of these, I can say that the only one that wins are the lawyers as the investor gets hurt by the usual pps deterioration that comes with the law suite announcement and even if he wins the recovery is cents while the lawyers get millions.
IMHO these type of lawsuits should be restricted to only illegal acts or gross negligence not bad ecoomy, bad judgement or where one person is simply displeased or attorneys want some money. Just my humble opinion resulting from observation and being involved in so may of these.