Sigma-Aldrich Corporation (NASDAQ:SIAL) Investor Files Lawsuit Against Acquisition By Merck KGaA

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Company Name(s): 
Sigma-Aldrich
Case Name: 
Sigma-Aldrich Deal Case 09/26/2014
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: SIAL
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
09/26/2014
Summary: 

September 26, 2014 (Shareholders Foundation) - An investor, who currently holds shares of Sigma-Aldrich Corporation (NASDAQ:SIAL), filed a lawsuit in effort to halt the proposed takeover of Sigma-Aldrich Corporation by Merck KGaA.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:SIAL stockholders by agreeing to sell Sigma-Aldrich too cheaply via an unfair process to Merck KGaA.

On September 22, 2014, Merck KGaA and Sigma-Aldrich announced that they have entered into an agreement under which Merck KGaA will acquire Sigma-Aldrich for $17.0 billion (€13.1 billion). Under the terms of the proposed transaction Merck KGaA will acquire all of the outstanding shares of Sigma-Aldrich for $140 per share in cash.

However, the plaintiff claims that the offer is too low and undervalues Sigma-Aldrich Corporation. Indeed, Sigma-Aldrich Corporation’s performance improved over the past years. In fact, Sigma-Aldrich Corporation reported that its annual Total Revenue rose from over $2.27 billion in 2010 to over $2.7 billion in 2013 and that its respective Net Income increased from $384 million to $491 million. Shares of Sigma-Aldrich Corporation (NASDAQ:SIAL) grew from $47.46 per share in February 2010 to as high as $104.14 per share on August 19, 2014. In addition, the plaintiff alleges that the process is also unfair to NASDAQ:SIAL stockholders.

On September 26, 2014, NASDAQ:SIAL shares closed at $136.77 per share.