AsiaInfo-Linkage Sued Over $890 Million Citic Capital BuyPhil Milford
AsiaInfo-Linkage Inc., 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).