May 26, 2017 (Shareholders Foundation) - An investor in shares of AdvancePierre Foods Holdings Inc (NYSE:APFH) filed a lawsuit in effort to halt the proposed takeover of AdvancePierre Foods Holdings Inc. by Tyson Foods, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed AdvancePierre Foods Holdings Inc stockholders by agreeing to sell AdvancePierre Foods Holdings Inc cheaply via an unfair process to Tyson Foods, Inc.

On April 25, 2017, Tyson Foods, Inc. and AdvancePierre Foods Holdings Inc (NYSE:APFH) announced that they have entered into a definitive merger agreement pursuant to which a subsidiary of Tyson will launch a tender offer to acquire all of AdvancePierre’s outstanding common shares for $40.25 per share in cash.

However, plaintiff claims that the proposed consideration NYSE:APFH shareholders will receive is grossly inadequate and undervalues AdvancePierre Foods Holdings Inc. In addition, the plaintiff alleges that the process is also unfair NYSE:APFH stockholders. Indeed, certain funds affiliated with Oaktree Capital Management, L.P. (“Oaktree”), which own approximately 42 percent of the outstanding shares of AdvancePierre common stock, have already entered into a tender and support agreement pursuant to which those funds have agreed to tender their AdvancePierre shares pursuant to the tender offer.