A shareholder in Motorola has put forward his legal objections to the $12.5 billion sale of the mobile manufacturer to Google earlier this week, citing the sale was not indicative of Motorolas true value.
The offered consideration does not compensate shareholders for the companys intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the companys value as a strategic asset for Google, John W. Keating, the aggrieved investor, argued.
Keating's class-action lawsuit against Motorola and the company CEO Sanjay Jha may come as a surprise, considering many industry pundits and analysts believe Google paid well over the odds to acquire the maker of the Atrix and the Xoom.
As a result of the acquisition, Motorola's shareholders will, in fact, collect $40 per share in cash, which amounts to 63 percent more than Motorola Mobility's closing price on the New York Stock Exchange on August 12th.
More haste, less speed
Through his legal complaint against Motorola and its chief, Keating intends to block the sale to Google, arguing that Motorola's board shouldn't have been so hasty in agreeing to the takeover.
Motorola has experienced an economic resurgence since separating into two separate companies, Keating claimed. The Android smartphone technology it relies on continues to gain ground on Apples iPhone.
Whether or not Keating gets his way and gains a court order preventing the sale is uncertain. What is certain, though, is that should the Google-Motorola deal be approved, neither he nor any of the other Motorola shareholders will profit from the company's future success.
[source: Bloomberg]
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When Matt was 7 years old he didn't write to Santa like the other little boys and girls. He wrote to Mario. When the rotund plumber replied, Matt's dedication to a life of gaming was established. Like an otaku David Carradine, he wandered the planet until becoming a writer at Pocket Gamer.
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