Investors and shareholders of Harman International Industries have filed a new class-action suit against the CEO of Harman and its board in a court in Delaware. The investors aren’t happy with the buying price that Samsung offered for each of Harman’s shares.
In November last year, Samsung announced that it was buying Harman for $8 billion. According to the lawsuit, Harman CEO Dinesh Paliwal and the board had undervalued the share price of the company. This caused a huge loss for the shareholders and investors of Harman.
Atlantic Investment Management, a US Hedge fund, also said in December last year that they wouldn’t support the deal. They too mentioned that the buying price was too low. Samsung bought each share for $112, but the plaintiffs state that earlier that year, the prices had gone as high as $145.
The deal is supposed to be completed by the end of Q1 2017, but only if more than 50 percent of the shareholders agree. Harman makes infotainment systems for connected cars, and lifestyle audio products for home. If Samsung ties the knot, it can become one of the biggest suppliers of car infotainment systems and other parts to manufacturers.
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In other news, it was rumored earlier today that Samsung is now decided on Galaxy S8 Specs, and even has a prototype in hand of the device. The Galaxy S8 is expected to feature the best-in-class specs, including the 10nm tech based processor, which could be Exynos chip for global variants, while USA ones could use Qualcomm’s Snapdragon 835 chip.
Source: ZDnet
