Applied Signal Technology, Inc. Investor Investigation Concerning Possible Unfairness Of Takeover

If you purchased shares of Applied Signal Technology, Inc. (NASDAQ:APSG) prior to Ocotber 21, 2010, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to, or call us at (858) 779-1554.
Company Name(s): 
Applied Signal Technology
Affected Securities: 

After Applied Signal Technology announced its board members agreed to a takeover of Applied Signal Technology by Raytheon Company at $38 per share an investigation on behalf of investors in Applied Signal Technology, Inc. (NASDAQ:APSG) questioning whether the offer and the sale process are unfair to APSG investors was announced.

The investigation by a law firm concerns whether certain officers and directors breached their fiducayr duty owed to the shareholders of Applied Signal Technology, Inc. (Public, NASDAQ:APSG) arising out of their attempt to sell Applied Signal Technology, Inc. to Raytheon Company.

On Monday, Dec. 20, 2010. Sunnyvale, California based Applied Signal Technology, Inc announced Applied Signal Technology, Inc. (NASDAQ: APSG) announced that it has entered into an agreement to be acquired by Raytheon Company (NYSE:RTN) in an all cash tender offer for $38.00 per share or an aggregate purchase price of approximately $490 million

On October 22, 2010 Applied Signal Technology had already announced that it intended to explore a broad range of strategic alternatives to enhance shareholder value, including, but not limited to, a sale or merger of Applied Signal Technology, or one or more other transactions. Applied Signal Technology, Inc. (NASDAQ:APSG) said the offer represents a premium of 8.5% to APSG’s closing price of $35.02 on December 17, 2010 and a premium of 37.0% to APSG’s closing price of $27.73 on October 21, 2010.
But besides a meager 8.5% premium to APSG’s closing price of $35.02 on December 17, 2010 the investigation concerns whether Applied Signal Technology, Inc. and certain of its officers and directors breached their fiduciary duties owed to Applied Signal Technology, Inc. (NASDAQ:APSG) investors by failing to undertake an adequate and fair sales process to obtain fair consideration for all shareholders of Applied Signal Technology, Inc. (NASDAQ:APSG) and by agreeing to an offer that undervalues Applied Signal Technology, Inc.
Applied Signal Technology, Inc has performed well for its shareholders. Applied Signal Technologys 12 month total revenue went from $161.91million reported on October 31, 2006 to $202.62million reported on October 31, 2009. Its Net Income went from $4.33million to $14.53million over the same time period. In addition during September 2010 several officers, vice presidents, and directors of Applied Signal Technology, Inc were granted APSG shares.
Further the investigation focuses on whether the Applied Signal Technology and its board of directors breached their fiduciary duties to Applied Signal Technology (NASDAQ:APSG) shareholder by failing to adequately shop the Company before entering into any transaction.