PLX Technology, Inc. (NASDAQ:PLXT) Investor Investigation Over Possible Breaches Of Fiduciary Duties In Proposed Acquisition

If you purchased shares of PLX Technology, Inc. (NASDAQ:PLXT) and currently hold any of those NASDAQ:PLXT shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
PLX Technology
Affected Securities: 

June 23, 2014 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of PLX Technology, Inc. (NASDAQ:PLXT) shares, was announced concerning whether the takeover of PLX Technology, Inc. by Avago Technologies Limited for $6.50 per share is unfair to NASDAQ:PLXT stockholders.

The investigation by a law firm concerns whether certain officers and directors of PLX Technology, Inc. breached their fiduciary duties owed to NASDAQ:PLXT investors in connection with the proposed acquisition.

On June 23, 2014,Avago Technologies Limited(Nasdaq:AVGO,) and PLX Technology, Inc. (NASDAQ:PLXT) announced that they have entered into an agreement under which Avago Technologies Limited will acquire PLX Technology, Inc. (NASDAQ:PLXT) in an all-cash transaction valued at approximately $309 million, or $293 million net of cash and debt acquired. Under the terms of the agreement a subsidiary of Avago Technologies Limited will commence a tender offer for all of the outstanding shares of PLX Technology, Inc common stock for $6.50 per share in cash.

However, given that at least one analyst has set the high target price for NASDAQ:PLXT shares at $8.00 per share, the investigation concerns whether the offer is unfair to NASDAQ:PLXT stockholders.
Furthermore, given that Potomac Capital Partners II, L.P., which is the largest stockholder of PLX Technology, Inc., certain senior members of the PLX Technology, Inc. management team and all of the directors of PLX Technology, Inc., collectively owning approximately 14.7% of shares outstanding on fully diluted basis have already executed a Tender and Support Agreement in support of the transaction and that Discovery Group I, LLC, the second largest stockholder of PLX Technology, Inc., has informed PLX Technology, Inc. that it supports the transaction, the investigation concerns whether the PLX Technology 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.

PLX Technology, Inc. reported that its annual Total Revenue rose from $100.25 million in 2012 to $104.49 million in 2013 and that its Net Loss of $32.59 million in 2012 turned into a Net Income of $7.14 million in 2013. Shares of PLX Technology, Inc. (NASDAQ:PLXT) grew from $3.54 per share in December 2012 to as high as $6.74 per share in January 2014.

On June 23, 2014, NASDAQ:PLXT shares closed at $6.48 per share.