Harman shareholders unhappy with Samsung deal, file lawsuit to block it
Samsung put $8 billion on the table in a bid to become the leading supplier of parts for connected cars by acquiring Harman. This deal is now in jeopardy as shareholders (led by Robert Pine) have filed a lawsuit against Harman’s CEO and board of directors.
The suit alleges that the agreed upon price is too low, below the corporate value of Harman. The shareholders are also unhappy that the CEO and board did not look for competing bids for the company. Samsung agreed to pay $112 per share, a 28% premium on the day and 37% higher than the average share price for November (Harman shares currently trade at just over $110).
There’s uncertainty on the other side of the fence too, Samsung official are concerned that this deal may have a negative impact on a corruption probe into Samsung’s de facto leader Lee Jae-yong.
A majority vote by Harman shareholders is needed for the deal to pass. The voting will take place at a meeting to be scheduled sometime in Q1 this year.
- 30 Jan 2017
Look up the word 'Sarcasm'. And read all my replies, not just one of them.
- 25 Jan 2017
Wow, check out hard cop and soft cop here. Listen sony, you may be the a'ple Pr teams first( Maybe only.) try at backstabbing Samsung without mentioning the note 7 this year, but mentioning Samsung edge phones is digging into concrete. If saying ...
- 18 Jan 2017
What's your definition of a Premium Brand? A product made of high quality materials or anything else?