BOSTON, May 28, 2015 /PRNewswire/ -- Block & Leviton
LLP (www.blockesq.com), a Boston-based law firm representing investors
nationwide, has commenced an investigation into possible breaches
of fiduciary duty by the Board of Directors of Broadcom Corporation
("Broadcom" or the "Company") (NASDAQ: BRCM) concerning the
proposed acquisition of the Company by Avago Technologies Ltd
("Avago"), in a transaction valued at approximately $37 billion. Under the terms of the
proposal, Avago will pay $17 billion
in cash and $20 billion in stock in
what has been deemed by Bloomberg as the biggest tech deal ever.
The per share consideration for Broadcom is estimated to be
$54.50, below the more than
$57 per share that Broadcom stock
traded at the day before the deal was formally announced, and only
a 16% premium to the price of the Company before any rumors
regarding an acquisition began to circulate.
The high analyst price target on the investment website Yahoo!
Finance for Broadcom was $63.00,
approximately 16% greater than the offer price. Notably, the
value of the Company's shares has increased approximately 10% in
the 2 months prior to the acquisition rumors and the Company
appeared to be poised for future, sustainable growth.
Furthermore, Broadcom shareholders will own only 32% of Avago upon
the completion of the contemplated merger, representing a clear
dilution of their interest.
Block & Leviton's investigation seeks to determine whether
Broadcom's directors breached their fiduciary duties by failing to
maximize shareholder value in the proposed acquisition by Avago and
the fairness of the process by which the Broadcom directors
considered and approved the transaction.
If you are a Broadcom shareholder and have questions about your
legal rights, or if you have information relevant to this
investigation, please contact attorney Steven P. Harte, at
(617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors
nationwide for violations of securities laws. The firm's
lawyers have collectively been prosecuting securities cases on
behalf of investors for over 80 years. This notice may
constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
steven@blockesq.com
(617) 398-5600
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SOURCE Block & Leviton LLP