Ancestry.com Inc (NASDAQ:ACOM) Investor Files Lawsuit Against Directors Over Alleged Breaches Of Fiduciary Duties In Takeover
Oct. 26, 2012 (Shareholders Foundation) -- An investor in shares of Ancestry.com Inc (NASDAQ:ACOM) filed a lawsuit against directors of Ancestry.com Inc in effort to block the proposed buyout of Ancestry.com Inc at $32 per NASDAQ:ACOM share.
The plaintiff alleged that the defendants breached their fiduciary duties owed to NASDAS:ACOM stockholder arising out of the attempt to sell the company too cheaply via an unfair process to a company owned by the London-based private-equity firm Permira funds and co-investors.
On October 22, 2012, Ancestry.com (Nasdaq:ACOM) announced that the company owned by the Permira funds and co-investors has entered into a merger agreement to acquire Ancestry.com for $32.00 per share in cash in a transaction valued at $1.6 billion.
However, the plaintiff claims that the $32.00offer is unfair to NASDAQ:ACOM stockholder and undervalues the company. In fact, NASDAQ:ACOM shares traded as recently as August 15, 2012 as high as $32.90 per share and on July 31, 2012 as high as $33.47 per share, both above the current offer. In addition, at least one analyst has set the high target price for NASDAQ:ACOM shares at $45.00 per share. Furthermore, Ancestry.com Inc has performed well in the past years for its investors. Its annual Revenue rose from $197.59 million in 2008 to $399.66 million in 2011 and its Net Income increased over the same time periods from $2.38 million to $62.90 million.