Broadcom Corporation (NASDAQ:BRCM) Investor Investigation Over Potential Breaches In Proposed Acquisition Announced

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May 29, 2015 - An investigation on behalf of investors, who currently hold shares of Broadcom Corporation (NASDAQ:BRCM), was announced concerning whether the takeover of Broadcom Corporation by Avago Technologies Limited for a value of $54.50 per NASDAQLBRCM shares is unfair to NASDAQ:BRCM stockholders.

The investigation by a law firm concerns whether certain officers and directors of Broadcom Corporation breached their fiduciary duties owed to NASDAQ:BRCM investors in connection with the proposed acquisition.

On May 28, 2015, Avago Technologies Limited (NASDAQ: AVGO) and Broadcom Corporation (NASDAQ:BRCM) announced that they have entered into an agreement under which Avago Technologies Limited will acquire Broadcom Corporation (NASDAQ:BRCM) in a cash and stock transaction that values the combined company at $77 billion in enterprise value. Under the terms of the proposed transaction holders of outstanding shares of Broadcom Corporation (NASDAQ:BRCM) will have the ability to elect to receive, for each Broadcom Corporation (NASDAQ:BRCM) share held: (i) $54.50 in cash; (ii) 0.4378 ordinary shares in a newly-formed Singapore holding company ("HoldCo"); (iii) a restricted equity security that is the economic equivalent of 0.4378 ordinary shares of HoldCo that will not be transferable or saleable for a period of one to two years after closing; or (iv) a combination thereof.

However, given that at least one analyst has set the high target price for NASDAQ:BRCM shares at $63.00 per share, the investigation concerns whether the offer is unfair to NASDAQ:BRCM stockholders. More specifically, the investigation concerns whether the Broadcom 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.

Broadcom Corporation (NASDAQ:BRCM) reported that its annual Total Revenue rose from over $8.3 billion in 2013 to over $8.42 billion in 2014 and that its respective Net Income increased from $424 million to $652 million. Shares of Broadcom Corporation (NASDAQ:BRCM) grew from $25.24 per share in August 2013 to as high as $48.20 per share on May 27, 2015.