An investor, who currently hold shares of SUPERVALU INC. (NYSE: SVU), filed a lawsuit against the takeover of SUPERVALU INC. by United Natural Foods, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE: SVU stockholders by agreeing to sell SUPERVALU INC. cheaply via an unfair process.
Eden Prairie, MN based SUPERVALU INC., together with its subsidiaries, operates as a grocery wholesaler and retailer in the United States and internationally. SUPERVALU INC. reported that its annual Total Revenue rose from over $10.91 billion for the 12 months period that ended on February 25, 2017 to over $14.15 billion for the 12 months period that ended on February 24, 2018.
On July 26, 2018, United Natural Foods, Inc. (NASDAQ: UNFI) and SUPERVALU INC. (NYSE: SVU) announced that they have entered into an agreement under which UNFI will acquire SUPERVALU for $32.50 per share in cash, or approximately $2.9 billion, including the assumption of outstanding debt and liabilities.
However, plaintiff claims that the proposed consideration NYSE: SVU shareholders will receive is grossly inadequate and undervalues SUPERVALU INC. indeed, at least one analyst has set the high target price for NYSE:SVU shares at $55.00 per share. In addition, the plaintiff alleges that the process is also unfair NYSE: SVU stockholders.