A Power-One Inc. shareholder sued company directors, claiming ABB Ltd.’s $1 billion takeover offer for the solar-equipment maker is too low.
The shareholder, Alejandro Becerra-Arteaga, said Power-One’s board breached its fiduciary duty by accepting ABB’s proposal to pay $6.35 a share.
“Given PowerOne’s recent strong performance, as well as its future growth prospects, the consideration shareholders will receive is inadequate and undervalues the company,” Becerra-Arteaga said in the complaint, filed today in Delaware Chancery Court.
ABB’s purchase would give the Carmillo, California-based company, the world’s biggest electricity-networks builder, access to inverters that allow solar power to be fed into grids.
The agreement was announced April 22 and includes protections for Zurich-based ABB, including a $20 million breakup fee that will keep out competitors, according to the complaint.
Larry Clark, with Power-One’s investor relations department, didn’t immediately return a call seeking comment on the suit.
The case is Becerra-Arteaga v. Thompson, 8506, Delaware Chancery Court (Wilmington).