April 20, 2024
Samsung
Samsung hit with class action suit by Harman investors
In a lawsuit filed in a Delaware court, the shareholders, headed by Robert Pine, claimed the whole deal process, especially the buying price, was unfavorable to Harman shareholders.
In November, Samsung announced the US$8 billion deal, its largest-ever purchase, to seek business synergies in its latest automotive push with Harman that supplies its infotainment systems to a slew of global carmakers.
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(From left) Samsung Electronics President and Chief Strategy Officer Young Sohn, Harman International CEO Dinesh Paliwal and Samsung’s automotive division chief and Senior Vice President Park Jong-hwan pose after a press conference in Seoul on Nov. 21. |
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The deal price means Samsung purchased Harman shares for US$112 apiece, about 28 percent higher than the company’s market capitalization based on share price at the time.
But the plaintiffs said the price was still undervalued, adding that the share price reached as high as US$145.10 in April 2015. On Jan. 11, the shares closed at US$110.80.
US hedge fund Atlantic Investment Management, which owns a 2.3 percent stake in Harman, also recently said it would vote against the deal as the buying price was too low.
By Lee Ji-yoon (jylee@heraldcorp.com)
