The shareholder, Alejandro Becerra-Arteaga, said the company’s board breached its fiduciary duty by accepting the proposal, according to the report. In the complaint filed in Delaware Chancery Court, Becerra-Arteaga said “the consideration shareholders will receive is inadequate and undervalues the company.”
ABB and Power-One announced the agreement April 22, and the total price for the acquisition is around $1 billion.
ABB has agreed to buy Power-One Inc., a provider of renewable energy and of energy efficient power conversion and power management solutions, in early April 2013 for $6.35 per share in cash or $1.028 million equity value.
Power-One is a maker of solar energy inverters, ranging from residential to utility applications. It also has a power solutions portfolio that is adjacent to ABB’s power conversion business.
The transaction is expected to close in the second half of 2013. ABB will finance the transaction out of its own funds. Credit Suisse acted as financial advisor to ABB, and Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor. Goldman Sachs & Co. acted as financial advisor to Power-One, and Gibson, Dunn & Crutcher LLP as legal advisor.