Standard Microsystems Is Sued Over $939 Million Takeover
Standard Microsystems Corp. (SMSC), a maker of semiconductors, was sued by an investor contending a $939 million buyout offer from memory product maker Microchip Technology Inc. (MCHP) undervalues the shares.
Directors of Hauppauge, New York-based Standard Microsystems are duty-bound to maximize the value of the shares, common stockholder Vladimir Gusinsky Living Trust contends in a complaint made public today in Delaware Chancery Court in Wilmington.
“The proposed transaction is the product of a flawed process” and deprives investors “of the ability to participate in the company’s long-term prospects,” trust lawyers said in the complaint.
Microchip Technology, based in Chandler, Arizona, said May 2 it agreed to pay $37 a share for Standard Microsystems, a 41 percent premium at the time, to add chips used in computers, consumer electronics and cars.
Standard Microsystems spokeswoman Carolynne Borders didn’t immediately return voice and e-mail messages seeking comment on the lawsuit.
Standard Microsystems fell 7 cents to $36.46 in Nasdaq Stock Market trading at 12:44 p.m. in New York.
The case is Gusinsky Living Trust v. Standard Microsystems, CA7522, Delaware Chancery Court (Wilmington).
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