Palm Investor sues due to “unfair” takeover bid

HP’s 5.7$/share takeover offer for Palm was about 30% over the then-current price – but it nevertheless left many investors who have had Palm stock for a longer period of time extremely unhappy. One of them seems to have filed a suit against the merger.

According to BloomBerg, the investor takes issue with the following issue:

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Hewlett-Packard announced plans to buy Palm on April 28 in a deal that will pay common stockholders $5.70 a share in cash. Elevation Partners LP, Palm’s biggest investor, stands to get $485 million for its preferred shares and warrants under the proposal. The preferred stock is priced at $8.50 a share.

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As of now, the suit has not gained class action status. However, the complainant is actively looking for partners – if you are based in the USA and have Palm stock, why not join in?

Related posts:

1. Elevation Partners pours 100mio $ more down the drain
2. Palm: Preliminary Q3 FY09 results out
3. Palm: webOS selling worse than expected
4. Elevation Partners on Palm
5. Elevation Partners: we still support Palm