An investor in Teavana Holdings Inc., has filed a lawsuit to block Starbucks' proposed takeover of Teavana Holdings. Starbucks announced the $620 million acquisition last week.
On Nov. 14, 2012, Teavana Holdings Inc. announced that Starbucks Coffee Company has agreed to acquire Teavana Holdings Inc. in an all-cash acquisition. Under the terms of the proposed transaction Teavana Holdings Inc. (TEA) stockholders of record will receive $15.50 per share in cash in the merger which will result in Teavana Holdings Inc. becoming a wholly owned subsidiary of Starbucks Coffee Company.
However, the plaintiff claims that the $15.50-per-share offer is unfair to TEA stockholders and undervalues the company, according to an announcement issued by the Shareholders Foundation, a professional portfolio legal monitoring and settlement claim filing service. The organization conducts research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. One analyst has set the high target price for TEA shares at $24 per share and that shares of Teavana traded as recently as May 2, 2012 as high as $21.47 per share and on February 27, 2012 as high as $24.70 per share, according to the Shareholders Foundation announcement.
The plaintiff said the process is also unfair to TEA investors; stockholders holding about 70 percent of the outstanding shares of common stock have already approved the merger agreement by written consent.
Those who currently are investors in Teavana shares and purchased their shares before the announcement have certain options and should contact the Shareholders Foundation, a professional portfolio legal monitoring and settlement claim filing service.
Starbucks did not return FastCasual.com's request for a comment before deadline.
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