A $2 billion takeover of PMC-Sierra (Nasdaq:PMCS) by Skyworks Solutions Inc. (Nasdaq:SWKS) has prompted an American lawfirm specializing in class action lawsuits to launch an investigation into the deal.
PMC-Sierra is headquartered in California, but its operations head office is in Burnaby.
On October 5, the two companies announced the $2 billion deal that would see the semi-conductor maker acquired by Skyworks at US$10.50 per share. The deal is not expected to close until the first half of 2016 and must still be approved by PMC-Sierra shareholders.
The company’s share value spiked 33% on October 6, from US$7.69 to US$10.24. That’s nearly double what shares were trading for on August 25, when they sunk to US$5.84.
American lawyer, Vincent Wong, announced an investigation into the offer.
“The investigation concerns whether the board of PMC-Sierra breached their fiduciary duties to stockholders by failing to adequately shop the company before agreeing to enter into this transaction, and whether the consortium is underpaying for PMC-Sierra shares,” Wong states in an October 12 press release.
WeissLaw LLP, an American lawfirm specializing in class action suits, likewise says the offer may not be the best deal for shareholders.
“Notably, at least one analyst set a target price of $14.00 per PMCS share, or $3.50 above the offer price,” the firm said in press release.
A spokesperson for PMC-Sierra could not be reached for a comment on how the deal may affect the Burnaby operations.
