The merger of Google and Motorola Mobility that happened early this week can be counted among the most powerful ones in recent times. The search giant Google bought Motorola Mobility for a whopping $12.5 billion. However, for John Keating, a Motorola Mobility shareholder, the company settled for less. According to reports, Keating is clearly displeased with Motorola Mobility for having settled for this price, so much so that he's actually gone ahead and sued not only the company, but also its CEO, Sanjay Jha.
Filed at a state courthouse in Chicago, Keating stated, “The offered consideration does not compensate shareholders for the company’s intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the company’s value as a strategic asset for Google.” The deal that was cemented earlier in the week provisioned for the shareholders – $40 in cash per share, as well as 63 percent more than the stock’s closing price as on August 12, 2011. All the above mentioned transactions have also been approved by both the parties (Google and Motorola Mobility). The case has been filed by Keating on behalf of all the Motorola Mobility shareholders, and also points a finger at Google and nine members from the board of Motorola Mobility.
Reports now suggest that Keating is seeking a lawsuit, either a class-action or group, in order to hamper the sale's proceedings.
Publish date: August 19, 2011 4:09 pm| Modified date: December 18, 2013 8:21 pm