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If you purchased shares of NetLogic Microsystems, Inc. (NASDAQ:NETL) prior to the announcement and currently hold those shares, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
San Diego, Sept. 12, 2011 (Shareholders Foundation) -- The announcement that NetLogic Microsystems agreed to be acquired by Broadcom Corporation for $50 per NETL share has caused an investigation on behalf of investors of NetLogic Microsystems, Inc. (NASDAQ:NETL) concerning whether the offer to acquire NetLogic Microsystems, Inc. and the buyout process would be unfair to investors of NetLogic Microsystems (NETL) and whether certain of its officers and directors or others breach their fiduciary duties owed investors in NASDAQ NETL shares.
The investigation by a law firm concerns whether the NetLogic Microsystems, certain of its officers and directors, and/or others breached their fiduciary duties owed to NetLogic Microsystems, Inc. (NASDAQ: NETL) investors in connection with the proposed acquisition.
On, Monday, Sept. 12, 2011, NetLogic Microsystems, Inc and Broadcom Corporation announced they have entered into a merger agreement under which, NetLogic Microsystems shareholders will receive $50 per NETL share in a transaction of approximately $3.7 billion, net of cash assumed.
Folllowing the merger announcement shares of NetLogic Microsystems, Inc. (NASDAQ:NETL) jumped from $31.91 on Sept. 9, 2011 to $47.93 per share on Monday.
However, NASDAQ: NETL shares traded as early as May as high as $43.28 per share, leaving some investors of NetLogic Microsystems with only a meager premium. Additionally at least one analyst has set the high target price at $54 per share, thus well above the $50offer.
Therefore, the investigation concerns whether Broadcom Corporation would underpay for, NASDAQ: NETL shares, thus unlawfully harming NetLogic Microsystems (NETL) stockholders, and whether NetLogic Microsystems Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to NetLogic Microsystems, Inc. (NASDAQ:NETL)shareholders by failing to adequately shop the Company before entering into the transaction.
NetLogic Microsystems annual Total Revenue rose from $109.03million in 07 to $381.75million in 2010. Its second quarter Revenue rose from $95.01million last year to $103.69million this year.
A potential securities class action lawsuit would seek to maximize the amount of money and information NetLogic Microsystems (NETL) shareholders would receive in a buyout, so the law firm.
