Sun Shareholders Sue
A Sun investor has filed a proposed class action lawsuit against the company for breaching its "fiduciary" duty when it attempts to sell Sun to Oracle under the "present conditions." The lawsuit is being filed on behalf of current investors of Sun who purchased their shares before the acquisition was announced on Monday, April 20th, and who continue to hold their shares, according to the announcement.
Also mentioned in the announcement:
.... According to a poll by the Shareholders Foundation, Inc., an investor advocacy group that does research to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock market, the majority of the participants (22%) think a price of $13-16 per Java share would be fair to Sun Microsystems investors in case of a takeover, 7% favor a price between $4-$8, 18% favor a price between $9-$12, 14% favor a price between $17-$20, 15% favor a price between $20-$24, 7% favor a price between $25-28, and 18% think the price should be over $28. Prior to the announcement of the proposed takeover of Sun by Oracle rumors said that Sun was in talk with IBM, but those talked ended without a result.
It is unclear what legal obligations Sun actually had to its investors prior to finalizing the Oracle transaction and subsequently going public with it on Monday; however, what is clear is that a number of investors are disappointed with the $9.50/share selling price. Do you think there's any legitimacy to this lawsuit? Did Sun sell for a 'fair' price?