AsiaInfo-Linkage Sued Over $890 Million Citic Capital Buy

AsiaInfo-Linkage Inc. (ASIA), which provides telecommunications software services in China, was sued by a shareholder who contends the stock is undervalued in a proposed $890 million buyout led by Citic Capital Partners.

Guanghui Cai contends Beijing-based AsiaInfo’s directors are violating their duty to get the best price for the stock in the $12-a-share cash deal, according to a complaint made public today in Delaware Chancery Court.

The board “opted to sell the company at a bargain price” while “according to Yahoo! Finance, at least one Wall Street analyst had a price target of $16 per share” for the firm, whose products serve almost a billion customers worldwide, according to the filing.

The lawsuit asks a judge to stop the buyout under its present terms and to award damages and court costs.

Jimmy Xia, spokesman for AsiaInfo-Linkage, didn’t immediately respond to a request seeking comment on the lawsuit after business hours in Beijing.

The case is Guanghui Cai v. AsiaInfo-Linkage, 8583, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at

To contact the editor responsible for this story: Michael Hytha at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.