San Diego, Feb. 9, 2012 (Shareholders Foundation) -- An investor in NYSE:SOA shares filed a lawsuit in State Court against directors in effort to block the proposed takeover of Solutia Inc by Eastman Chemical Company for a value of approximately $27.65 per share.
According to the complaint the plaintiff alleges that defendants breached their fiduciary duties owed to Solutia (NYSE:SOA) investors arising out of the attempt to sell Solutia Inc via an unfair process at an unfair price.

On Friday, Jan. 27, 2012, Solutia Inc. (NYSE:SOA) and Eastman Chemical Company (NYSE:EMN) announced that they have entered into an agreement, under which Eastman Chemical Company will acquire Solutia at a total transaction value of approximately $4.7 billion, including the assumption of Solutia’s debt. Under the terms of the proposed transaction, Solutia stockholders will receive $22.00 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock.

However, the plaintiff alleges that defendants attempt to sell Solutia too cheaply to Eastman Chemical and that the current offer undervalues NYSE:SOA shares. Indeed at least one analyst has set the high target price for NYSE: SOA shares at $31 per share. Further Solutia has been performing well for its investors in recent years. In fact, Solutia’s annual Revenue rose from $1.61billion in ‘09 to $1.95billion in 2010 and its Net Loss of $47.00million in 2009 turned into a Net Income of $78million in 2010. Solutia reported that is third quarter Revenue increased from $511million in 2010 to $519million in 2011 and its third quarter Net Income rose over the same time frames from $48million to $75million.