June 8, 2015 (Shareholders Foundation) - An investor who currently holds shares of Altera Corporation (NASDAQ:ALTR), filed a lawsuit in effort to halt the proposed takeover of Altera Corporation. by Intel Corporation for $54 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ALTR stockholders arising out of the attempt to sell Altera Corporation too cheaply via an unfair and self-serving process to Intel Corporation.
On June 1, 2015, Intel Corporation and Altera Corporation (NASDAQ:ALTR) announced a definitive agreement under which Intel Corporation would acquire Altera Corporation (NASDAQ:ALTR) for $54 per share in an all-cash transaction valued at approximately $16.7 billion.
However, the plaintiff claims that the proposed consideration NASDAQ:ALTR shareholders will receive is grossly inadequate and undervalues Altera Corporation. Altera Corporation reported that its annual Total Revenue rose from over $1.73 billion in 2013 to over $1.93 billion in 2014 and that its respective Net Income increased from $440.06 million to $472.66 million. Shares of Altera Corporation (NASDAQ:ALTR) grew from $30.83 per share in October 2014 to as high as $50.10 per share on May 29, 2015. In addition, the plaintiff claims that the process is also unfair to NASDAQ:ALTR stockholders.