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Angry Palm shareholders attempt legal action against HP

Alex Scroxton
A group of disgruntled shareholders has taken legal action in the US in an attempt to block the $1.2bn acquisition of smartphone developer Palm by Hewlett-Packard, claiming the deal as it stands does not value Palm highly enough and stands to unfairly benefit major shareholders.

According to Bloomberg, the lawsuit centres around the value set to be realised by key shareholders, alleging that owners of common stock in Palm will receive less - $5.70 per share - than owners of preferred series B stock.

Holders of the B stock include Palm's largest shareholder, investment firm Elevation Partners, which is set to get over $8 per share.

The filing also claims that the offer for Palm was far too low, representing a discount on Palm's 12 April stock price and less than 50% of its total stock two months ago, according to a statement by investor advocacy group Shareholders' Foundation. 

Neither HP nor Palm have yet commented.
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