July 30, 2013 (Shareholders Foundation) - An investor, who currently hold shares of Nash-Finch Company (NASDAQ:NAFC), filed a lawsuit in effort to halt the proposed takeover of Nash-Finch Company by Spartan Stores, Inc for a value of approximately $25.44 per NASDAQ:NAFC share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:NAFC stockholders by agreeing to sell the company at an unfair price via an unfair process.

On July 22, 2013, Spartan Stores, Inc. (Nasdaq: SPTN) and Nash Finch Company (Nasdaq: NAFC) announced that they have entered into a merger agreement under which Spartan Stores and Nash Finch will combine in an all-stock merger valued at approximately $1.3 billion, including existing net debt at each company. Under the terms of the transaction Nash Finch shareholders will receive a fixed ratio of 1.20 shares of Spartan Stores common stock for each share of Nash Finch common stock they own. Based on a closing price of $21.20 per Nasdaq: SPTN share on Friday, July 19, 2013, NASDAQ:NAFC stockholders will receive about $25.44 per share.

However, the plaintiff says that the offer is too low and undervalues the company. Indeed, following the takeover news NASDAQ:NAFC shares rose in the open market on July 22, 2013, to as high as $28.85 per share.

On July 30, 2013, NASDAQ:NAFC shares closed at $24.12 per share.