The Shareholders Foundation announces that an investor who currently holds shares of Broadcom Corporation (NASDAQ:BRCM), filed a lawsuit in effort to halt the proposed takeover of Broadcom Corporation by Avago Technologies Limited for a value of $54.50 per NASDAQLBRCM shares.
Investors who purchased shares of Broadcom Corporation (NASDAQ:BRCM) and currently hold any of those NASDAQ:BRCM shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:BRCM stockholders arising out of the attempt to sell Broadcom Corporation too cheaply via an unfair and self-serving process to Avago Technologies Limited.
On May 28, 2015, Avago Technologies Limited (NASDAQ: AVGO) and Broadcom Corporation (NASDAQ:BRCM) announced that they have entered into an agreement under which Avago Technologies Limited will acquire Broadcom Corporation (NASDAQ:BRCM) in a cash and stock transaction that values the combined company at $77 billion in enterprise value. Under the terms of the proposed transaction holders of outstanding shares of Broadcom Corporation (NASDAQ:BRCM) will have the ability to elect to receive, for each Broadcom Corporation (NASDAQ:BRCM) share held: (i) $54.50 in cash; (ii) 0.4378 ordinary shares in a newly-formed Singapore holding company (“HoldCo”); (iii) a restricted equity security that is the economic equivalent of 0.4378 ordinary shares of HoldCo that will not be transferable or saleable for a period of one to two years after closing; or (iv) a combination thereof.
However, the plaintiff claims that the proposed consideration NASDAQ:BRCM shareholders will receive is grossly inadequate and undervalues Broadcom Corporation. Indeed, at least one analyst has set the high target price for NASDAQ:BRCM shares at $63.00 per share. Furthermore, Broadcom Corporation (NASDAQ:BRCM) reported that its annual Total Revenue rose from over $8.3 billion in 2013 to over $8.42 billion in 2014 and that its respective Net Income increased from $424 million to $652 million. Shares of Broadcom Corporation (NASDAQ:BRCM) grew from $25.24 per share in August 2013 to as high as $48.20 per share on May 27, 2015. . In addition, the plaintiff claims that the process is also unfair to NASDAQ:BRCM stockholders
Those who are current investors in Broadcom Corporation (NASDAQ:BRCM) 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