According to a press release an investigation on behalf of Avanex Corp. (NASDAQ: AVNX) investors over possible breaches of fiduciary duty and other violations of state law by the board of directors of Avanex Corp. (NASDAQ: AVNX) arising out of their attempt to sell the Company to Bookham, Inc. has been announced.

Under the terms of the agreement, shareholders of Avanex Corp. (NASDAQ: AVNX) will receive 5.426 shares in Bookham common stock - Bookham, Inc. (NASDAQ: BKHM) for each share of Avanex Corp. (NASDAQ: AVNX) they own, or approximately $2.17 as of the closing trade on January 26, 2009. According to the press release by a law firm the transaction is unfair, given that, among other things, Avanex Corp. shares (NASDAQ: AVNX) traded above $3.00 per share as recently as November 2008 and analysts value Avanex Corp. (NASDAQ: AVNX) at $4.80 per share. Also, the sales process Avanex Corp. conducted was flawed, so the investigation, given that, in contravention of their fiduciary duties to maximize shareholder value, Avanex Corp.'s Board agreed to a 'no-solicitation' provision and a $1.640 million termination fee which will ensure no superior offer will ever be forthcoming.

The proposed acquisition is subject to customary conditions and regulatory approvals.