A lawsuit was filed by investor in shares of Multimedia Games Holding Company Inc (NASDAQ:MGAM) in effort to stop the proposed takeover and NASDAQ:MGAM stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/22/2014 -- An investor, who currently holds shares of Multimedia Games Holding Company Inc (NASDAQ:MGAM), filed a lawsuit in effort to halt the proposed takeover of Multimedia Games Holding Company Inc by Global Cash Access Holdings for $36.50 per share.
Investors who purchased shares of Multimedia Games Holding Company Inc (NASDAQ:MGAM) and currently hold any of those NASDAQ:MGAM shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:MGAM stockholders by agreeing to sell Multimedia Games Holding Company Inc. too cheaply via an unfair process to Global Cash Access Holdings, Inc.
On September 8, 2014, Global Cash Access Holdings, Inc. and Multimedia Games Holding Company Inc (NASDAQ:MGAM) announced that they have entered into a merger agreement whereby Global Cash Access Holdings, Inc has agreed to acquire all the outstanding common stock of Multimedia Games Holding Company Inc for $36.50 per share, for an aggregate purchase price of approximately $1.2 billion in cash.
However, the plaintiff claims that the $36.50-offer is too low and undervalues Multimedia Games Holding Company Inc. indeed, at least one analyst has set the high target price for NASDAQ:MGAM shares at $40.00 per share and NASDAQ:MGAM shares traded in August 2013 as high as $39.24 per share. Furthermore, Multimedia Games Holding Company Inc reported that its Total Revenue rose from $127.86 million for the 12 months period that ended on September 30, 2011 to $189.37 million for the 12 months period that ended on September 30, 2013 and that its Net Income for those respective time periods increased from $5.68 million to $34.92 million.Shares of Multimedia Games Holding Company Inc (NASDAQ:MGAM) grew from $4.08 per share in October 2011 to as high as $39.24 per share in August 2013.
On October 20, 2014, NASDAQ:MGAM shares closed at $32.74 per share.
Those who are current investors in Multimedia Games Holding Company Inc shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com