The Shareholders Foundation announces that an investor, who currently holds shares of Mavenir Systems Inc (NYSE:MVNR), filed a lawsuit in effort to stop the proposed takeover of Mavenir Systems Inc by Mitel for a value of $17.94 per share.
Investors who purchased shares of Mavenir Systems Inc (NYSE:MVNR) and currently hold any of those NYSE:MVNR shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:MVNR stockholders by agreeing to sell Mavenir Systems Inc. too cheaply via an unfair process to Mitel.
On March 2, 2015, Mitel and Mavenir Systems (NYSE:MVNR) announced that that they have entered into a merger agreement in which Mitel will acquire all of the outstanding shares of Mavenir common stock in a cash and stock deal valued at approximately $560 million. Under the terms of the merger agreement, Mitel will commence an exchange offer pursuant to which Mavenir stockholders will be entitled to elect to receive either all-cash or all-stock consideration for each share of Mavenir common stock, subject to proration, in either case with a value of $11.08 plus 0.675 of a Mitel common share, or $17.94 based on the closing price of a Mitel common share on February 27, 2015.
However, the plaintiff claims that the proposed consideration NYSE:MVNR shareholders will receive is grossly inadequate and undervalues Mavenir Systems. Indeed, at least one analyst has set the high target price for NYSE:MVNR shares at $24.00 per share. Mavenir Systems Inc reported that its annual Total Revenue rose from $8.25 million in 2010 to $101.31 million in 2013. Shares of Mavenir Systems Inc (NYSE:MVNR) reached as high as $18.02 per share in March 2013.
In addition, the plaintiff claims that the process is also unfair to NYSE:MVNR stockholders. Indeed, in connection with the execution of the merger agreement, certain of Mavenir’s significant stockholders, who collectively hold approximately 45% of the outstanding shares of Mavenir common stock, have already entered into tender support agreements with Mitel pursuant to which they have agreed to tender their shares to Mitel’s offer.
On March 24, 2015, NYSE:MVNR shares closed at $17.98 per share.
Those who are current investors in Mavenir Systems Inc (NYSE:MVNR) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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