GenOn Energy, Inc. was sued by an investor contending its recent acquisition undervalues the company.
GenOn board members are selling the company “by means of an unfair process and for an unfair price,” Diane Cohen, the investor, alleged in court papers made public today in Delaware Chancery Court.
Besides selling too cheaply, the directors wrongfully agreed to “certain onerous and preclusive deal protection devices” that discourage other offers, according to Cohen.
The proposed deal contains a provision barring the company from soliciting competing offers and forcing it to end any negotiations with prospective suitors, the investor claims. The buyer also have a right to match any higher bids, according to court papers.
Access to Information
“The merger agreement gives the buyout group access to any rival bidder’s information and allows the buyout group a free right to top any superior offer simply by matching it,” lawyers for Cohen wrote.
Officials of GenOn couldn’t immediately be reached for comment on the suit.
To contact the law firm Tripp Levy PLLC that is handling this matter: toll free (877)772-3975 or email at email@example.com Rating : (1 Rating) Rate it: