Dionex Corporation Investor Lawsuit Against Buyout Attempt By Thermo Fisher Scientific Imminent
An investigation concerning whether the offer to take over Dionex Corporation (NASDAQ:DNEX) at $118.50 per DNEX share and sale process are unfair to investors of Dionex Corporation (NASDAQ:DNEX) was announced.
The investigation by a law firm concerns whether Thermo Fisher Scientific, Dionex Corporation (NASDAQ:DNEX) and certain of its officers and directors breached their fiduciary duties owed investors in Dionex Corporation (NASDAQ:DNEX) in connection with the proposed takeover by Thermo Fisher Scientific.
On, Monday, December 13, 2010, Dionex Corporation (NASDAQ:DNEX) and Thermo Fisher Scientific (NYSE: TMO) announced that their Boards of Directors have approved a transaction under which Thermo Fisher Scientific will acquire all of the outstanding shares of Dionex Corp. (DNEX) for $118.50 per share in cash, or a total purchase price of approximately $2.1 billion. Dionex Corporation said the offer represents a 21% premium to Dionex's closing stock price on December 10, 2010, the last trading day prior to today's announcement and a 32% premium to Dionex's average closing stock price over the last 60 trading days.
Shares of Dionex Corporation (Public, NASDAQ:DNEX) jumped in response to the takeover announcement from $98.85 per share on Friday to $118.25 per share on Monday.
But the investigation by a law firm concerns whether the offer undervalues Dionex Corporation and the sale process is unfair to the shareholders of Dionex Corporation (NASDAQ:DNEX). A potential class action lawsuit would seek to maximize the amount of money and information Dionex Corp. shareholders receive in the buyout, so the law firm. In addition Dionex Corporation has performed well in the past for its shareholders. Dionex Corp’s 12 months Total Revenue went from $327.28million reported on June 30, 2007 to $419.61million reported on June 30, 2010. Its Net Income rose over the same time frame from $45.65million to $59.06million.
Therefore the investigation concerns whether the Dionex Corp. Board of Directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of Dionex Corporation (NASDAQ:DNEX) and breached their fiduciary duties to Dionex Corp. (DNEX) shareholder by failing to adequately shop the Company before entering into the transaction.