The $16.7bn acquisition of Freescale Semiconductor by NXP Semiconductors is being probed by legal firms for the fairness of the deal.
Maryland based securities litigation firm Brower Piven has started an investigation whether the Board of Directors of Freescale Semiconductor has violated the state law and breached fiduciary duty in the deal.
As per the agreement, Freescale shareholders will receive $6.25 in cash and 0.3521 of an NXP share for each share of Freescale common stock they own.
The investigation will probe whether company board adequately pursued alternatives to the deal and ensured that shareholders get best prices possible for the common stock they held.
Another legal firm WeissLaw is investigating whether Freescale Semiconductor Board acted to maximise shareholder value prior to entering into the agreement.
WeissLaw will probe whether the company’s board ensured to maximise the shareholder’s value by selling Freescale Semiconductor.
According to the company, the offer price was less than 0.1% based on the company’s February 27, 2015 closing price.
