A lawsuit was filed by an investor in shares of DIRECTV (NASDAQ:DTV) in effort to stop the proposed takeover and NASDAQ:DTV stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/27/2014 -- An investor, who currently holds shares of DIRECTV (NASDAQ:DTV) filed a lawsuit in effort to halt the takeover of DIRECTV by AT&T for a value of $100.00 per share.
Investors who purchased shares of DIRECTV (NASDAQ:DTV) and currently hold any of those NASDAQ:DTV shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:DTV stockholders by agreeing to sell DIRECTV too cheaply via an unfair process to AT&T.
On May 18, 2014, AT&T (NYSE:T) and DIRECTV (NASDAQ:DTV) announced that they have entered into an agreement under which AT&T will acquire DIRECTV in a stock-and-cash transaction for $95 per share based on AT&T’s closing price on May 16, 2014. Under the terms of the proposed transaction DIRECTV shareholders will receive $95.00 per share under the terms of the merger, comprised of $28.50 per share in cash and $66.50 per share in AT&T stock.
However, the plaintiff claims that the offer is too low and undervalues DIRECTV. Indeed, at least one analyst has set the high target price for NASDAQ:DTV shares at $100.00 per share.
In addition, DIRECTV reported that its annual Total Revenue rose from over $24.1 billion in 2010 to over $31.75 billion in 2013 and that its respective Net Income increased from over $2.19 billion to over $2.85 billion. Shares of DIRECTV (NASDAQ:DTV) grew from under $70 in late 2013 to as high as over $88 per share in early May 2014.
Furthermore, the plaintiff alleges that the process is also unfair to NASDAQ:DTV stockholders. The plaintiff says that the agreement includes preclusive deal protection devices, such as a $1.4 billion termination fee, a no solicitation, matching rights provision, that prevent others from making a higher offer.
On May 23, 2014, NASDAQ:DTV shares closed at $83.59 per share.
Those who are current investors in DIRECTV (NASDAQ:DTV) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com