<<If this offer is approved I would expect further litigation via class action - and although I hate most shareholder class action litigation - this one would have some creedence imo.<<
This didn't take a rocket scientist to figure out. Tsang has it coming for that ludicrous and embarrasing offer.
Oak Technology Sued by Shareholders Over $167 Mln Acquisition
Wilmington, Delaware, Nov. 20 (Bloomberg) -- Oak Technology Inc., which makes multimedia computer chips and software, was sued by shareholders who say a proposed $167 million buyout led by Oak's management won't give them enough money for their stock.
The company's chairman and chief executive officer, David Tsang, announced the offer Wednesday. He said he formed Gold Acquisition Group to buy all outstanding shares of the company for $4.50 a share, with the offer to expire Dec. 14.
In one of two lawsuits filed in Delaware Chancery Court in Wilmington, Oak shareholder Judith Confidine contends the offer shortchanges stock owners because the company is worth more than the price offered, and directors have not undertaken a full assessment of its real value and prospects for growth.
''The Buy-Out Group is seeking to eliminate Oak's public stockholders at a grossly inadequate and unfair price (and) obtain for themselves the entire ownership of the company at the lowest possible price,'' Confidine says in the suit, which asks a judge to grant class-action status, halt the transaction and award damages.
Officials of Sunnyvale, California-based Oak were not immediately available to comment on the suit. Oak shares rose 3/32 to 4 3/16 yesterday.
08:53:57 11/20/1998
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