April 18, 2017 (Shareholders Foundation) - An investor, who currently holds shares of Lumos Networks Corp (NASDAQ:LMOS), filed a lawsuit in effort to halt the proposed takeover of Lumos Networks Corp. by EQT Infrastructure investment for $18 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:LMOS stockholders by agreeing to sell Lumos Networks Corp. too cheaply via an unfair process to EQT Infrastructure investment strategy.

On February 20, 2017, Lumos Networks Corp (NASDAQ:LMOS) announced that it has entered into a definitive agreement to be acquired by the EQT Infrastructure investment strategy for $18.00 per share, resulting in an enterprise value of approximately $950 million.

However, plaintiff claims that the proposed consideration NASDAQ:LMOS shareholders will receive is grossly inadequate and undervalues Lumos Networks Corp. Indeed, at least one analyst has set the high target price for NASDAQ:LMOS shares at $21.00 per share. In addition, the plaintiff alleges that the process is also unfair NASDAQ:LMOS stockholders. The plaintiff claims that the defendants agreed to preclusive deal protection devices such as $16 million termination fee provision, that deter other bidders from making a superior offer for Lumos Networks Corp.

On April 18, 2017, NASDAQ:LMOS shares closed at $17.84 per share.