Blue Coat Systems Inc. (BCSI), a provider of Internet-security software, was sued by an investor who contends the stock is undervalued in a planned $1.3 billion buyout by a group headed by Thoma Bravo LLC.
Directors of the Sunnyvale, California-based company have a duty to get the best possible price for the stock, and negotiated an inadequate premium in the $25.81-a-share deal, lawyers for Robert N. McLain said in a Delaware Chancery Court complaint made public today in Wilmington.
The agreement offers Blue Coat shareholders a premium “of only 14 percent over its average daily trading price for the preceding year,” according to the complaint. The stock rose 5 cents to $25.20 at 2:21 p.m. New York time in Nasdaq Stock Market trading.
“It’s our policy not to comment on legal matters,” Steve Schick, a Blue Coat spokesman, said in an e-mailed message.
Blue Coat is looking for $465 million in loans to back the takeover, including a $415 million term loan and a $50 million revolving line of credit, according to a Dec. 9 regulatory filing.
The case is Robert N. McLain v. David Hanna and Blue Coat Systems Inc., CA7105, Delaware Chancery Court (Wilmington).
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