Transmeta takeover threatened by lawyers
Attorneys corral shareholders for class action suit
Novafora's takeover of Transmeta could be threatened by a class action lawsuit from disgruntled shareholders.
Lawyers Levi and Korsinsky are calling on shareholders to join a class action case against Transmeta because, they say, the takeover is unfair.
As we reported yesterday Novafora is offering $255.6m for the company, or between $18.70 and $19.00 per share.
But Transmeta's third quarter result statement, also released Monday, said: "Transmeta's cash, cash equivalents and short term investments at September 30, 2008 totaled $255.2m."
Or as the lawyers put it: "The price is unfair given that, as of September 20, 2008, the Company had $255m in cash and cash equivalents. The offer price, in effect, values the Company’s operations and intellectual property at zero."
They are asking shareholders to register for a class action against Transmeta. The lawyers' statement is here.
Transmeta launched with promises to radically change the market for low power chips for mini-notebooks. It gave up manufacturing in 2005 to concentrate on licensing its intellectual property to other chip makers. ®