McAfee, Inc. investor files lawsuit against Intel offer

Aug. 23, 2010 - PRLog -- Within 24 hours after Intel hit the market with its move into the internet security sector an investor in shares of McAfee, Inc.  filed a lawsuit in State Court alleging breaches of fiduciary duty by the MFE board of directors arising out of their attempt to sell McAfee too cheaply to Intel Corp.

If you are a current investor in McAfee, Inc. , who purchased MFE stocks prior to August 18, 2010, and continue to hold those shares, and/or have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc by email mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duty owed to the public stockholders of McAfee by the attempt to sell Mc Afee, Inc to Intel Corp. via an unfair process at an unfair price. On Thursday, August 19, 2010, McAfee, Inc and Intel Corporation announced that they have entered into a agreement to acquire Santa Clara, California based McAfee, Inc., through the purchase of all of its common stock at $48 per share in cash, for approximately $7.68 billion. According to McAfee, Inc. its board of directors has approved the deal. McAfee’s revenue almost doubled from 2006 to 2009. In 2006 McAfee reported Total Revenue of $1.14516billion, in 2007 $1.30822billlion, in 2008 $1.6billion, and in 2009 $1.92733billion. Its Net Income went from $137.47million in 2006 to $173.42million in 2009.

Shares of McAfee, Inc. (Public, NYSE-MFE) increased by about 60% from $30 per share on Wednesday August 18, 2010, to $47.25 per share after the announcement. Considering a closing price of $29.93 per share on the day before the announcement and an offer of $48 per share, McAfee investors would receive a premium of 60%, but MFE, which traded in October 2009 at over $45 per share shares, were down from over $41 per share in April 2010, after McAfee, Inc. announced its first quarter results and its second quarter guidance. Considering a stock price between $41 in April and $45 in October of $43 per share an offer of $48 per share, represents a more realistic premium of 10%.

At least one analyst has set a price target of $50.00 per share for McAfee, Inc. . With a McAfee, Inc share price of $50 per share Intel Corp would receive McAfee at a substantial discount. Additionally the deal has been locked up by a no-solicitation provision and a $230 million termination fee.

The plaintiff alleges that the defendants breached their fiduciary duty by the attempt to sell McAfee, Inc. to Intel Corporation at an unfair consideration through an unfair process. The plaintiff claims, among other things, that instead of fulfilling their fiduciary duties, certain officers and directors of McAfee have decided to purse their own interests, seeking to cash in on valuable change-in-control agreements or prestigious positions in the post-proposed acquisition company. Defendants entered in to numerous agreements meant to deter additional offers for McAfee, like a $230 termination fee or a no-solicitation clause, so the lawsuit.


Those who are current investors in McAfee, Inc. (Public, NYSE-MFE), who purchased MFE stocks prior to August 18, 2010, and continue to hold those shares, and/or have any information relating the investigation, have certain options and should contact the Shareholders Foundation, Inc by email mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

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The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.