Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Acme Packet Sued by Shareholder Over Oracle Bid

Feb. 12 (Bloomberg) -- Acme Packet Inc. was sued by an investor claiming that Oracle Corp.’s $2.1 billion takeover bid for the company is too low.

Acme directors breached their fiduciary duty to shareholders by agreeing to provisions that restrain other bidders, Willard Love said in a complaint filed today in Delaware Chancery Court in Wilmington.

“Given Acme’s future growth prospects, the consideration shareholders will receive is inadequate and undervalues the company,” Love said in the complaint. “Oracle is seeking to acquire the company at a most opportune time, at a time when the company is still suffering setbacks from a temporary stall in the telecom market.”

Oracle, the second-largest maker of business applications, said Feb. 4 that it would pay $29.25 a share in cash for Bedford, Massachusetts-based Acme to gain networking gear that helps corporations securely transmit information over the Internet.

Acme’s tools to transmit voice and video via the Web may help Oracle challenge Cisco Systems Inc. in networking. Excluding Acme’s cash, Oracle is paying $1.7 billion. The offer is more than six times Acme’s sales during the past 12 months, according to data compiled by Bloomberg.

Love seeks to represent all Acme shareholders in his bid to block the deal and is requesting unspecified damages.

Mike O’Malley, a spokesman for Acme Packet, declined to comment on the complaint.

The case is Love v. Ory CA8303, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Sophia Pearson in Philadelphia at spearson3@bloomberg.net

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.