Investors who purchased shares of PLX Technology, Inc. (NASDAQ:PLXT)
The investigation by a law firm concerns whether whether certain officers and directors of PLX Technology, Inc. breached their fiduciary duties owed to NASDAQ:PLXT investors in connection with the proposed acquisition.
On Monday, April 30, 2012, Integrated Device Technology, Inc. (NASDAQ: IDTI) and PLX Technology, Inc. (NASDAQ: PLXT) announced that they have signed an agreement pursuant to which Integrated Device Technology will acquire PLX Technology. Under the terms of the proposed transaction, Integrated Device Technology will acquire all of the outstanding shares of PLX Technology common stock pursuant to an exchange offer, followed by a second step merger.
In the acquisition, PLX Technology stockholders will receive $3.50 in cash and 0.525 shares of IDT common stock for each PLX common share outstanding. Based on IDT's closing stock price on April 27, 2012, the transaction is valued at approximately $7.00 per PLX share and results in a total transaction value of approximately $330 million.
Following the takeover news shares of PLX Technology, Inc. (NASDAQ:PLXT)
However, PLX Technology’s financial performance improved in recent years. Its annual Revenue rose from $81.07million in 2008 to $115.79million in 2011.
Therefore the investigation for NASDAQ:PLXT investors concerns whether the proposed transaction is unfair to PLX Technology stockholders. Specifically, the investigation focuses on whether the PLX Technology Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Those who are current investors in PLX Technology, Inc. (NASDAQ:PLXT)