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 pmilford@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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