AuthenTec investor challenges Apple takeover in court
An unhappy investor has filed a legal suit against AuthenTec, claiming that the company has been remiss in its duty to provide the best value for their investors by accepting Apple’s acquisition bid.
Earlier this month, in a much-publicized move, Apple, Inc. made a bid for AuthenTec, a leader in developing software for fingerprint-authentication, to boost its security options for its iPad and iPhone.
According to deal, Apple is to pay US$356 million or US$8 a share in order to make AuthenTec a wholly owned subsidiary of Apple. Part of the deal gives Apple access to patent licenses totaling $115 million. The deal also states that if AuthenTec finds an alternative offer, it will have to pay Apple a termination fee of US$10.95 million in cash.
Craven Lee, the plaintiff, who filed the case against AuthenTec in Delaware Chancery Court, claimed that Apple’s offer is too low. In his complaint, he stated that: “AuthenTec, if properly exposed to the market for corporate control, would bring a price materially in excess of the amount offered.”
Will this lawsuit will impact Apple’s acquisition of AuthenTec?