Harman shareholders file class action suit to oppose Samsung acquisition deal


Last November, Samsung Electronics announced it would acquire US-based automotive and audio system maker Harman International for $8 billion. Samsung intends to tap into Harman's automotive business and incorporate its high-end audio solutions in future products.

However, Harman shareholders have now filed a class action lawsuit against the company's CEO and board, in a bid to deter the finalization of the deal. According to the shareholders, Harman International's value has been greatly depreciated, thus resulting in a an inadequate and flawed merger deal.

The lawsuit alleges that Harman CEO Dinesh Paliwal and the board of the company did not act in good faith in striking the deal with Samsung. The shareholders will try to exercise their right to vote against the merger in a bid to stop the finalization of the $8 billion deal no later than November of this year.

If the deal falls through and relations between the two companies go sour, we may never see a Samsung flagship smartphone with Harman's high-end audio tech built-in.

source: Korea Times via ZDNet

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38 Comments

1. DoggyDangerous

Posts: 1028; Member since: Aug 28, 2015

It will be very sad to see a flagship without harman kardon audio. I hope that share holders will stop opposing the deal.

5. Mxyzptlk unregistered

Don't need Samsung stealing more companies.

6. John-Knotts

Posts: 380; Member since: Feb 28, 2015

Stupid comment of the day

14. tedkord

Posts: 17357; Member since: Jun 17, 2009

You'll get one most days from him.

18. Mxyzptlk unregistered

Pot, kindly meet the kettle.

19. Mxyzptlk unregistered

Pointless comment of the day. Week. Month. Year. Decade. Century. I can keep on unless you want to stop before I embarrass you.

28. BlackhawkFlys

Posts: 914; Member since: May 07, 2014

Don't mind him. She is just a jealous woman....

29. BlackhawkFlys

Posts: 914; Member since: May 07, 2014

She is just a jealous woman

7. maherk

Posts: 6878; Member since: Feb 10, 2012

I guess someone stole your brain

20. Mxyzptlk unregistered

Well you've never had a brain to steal, majerk.

8. sissy246

Posts: 7112; Member since: Mar 04, 2015

LMAO I have to say, at least you give us a good laugh with you dumb comments.

21. Mxyzptlk unregistered

Your bad Engrish gives me a great laugh.

23. maherk

Posts: 6878; Member since: Feb 10, 2012

Engrish? How ironic lol

26. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

He'll keep coming back, he's PA's biggest masochist.

33. Mxyzptlk unregistered

25. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Gret laugh? So everyone who are bad at english because it's not their native language are laughable? Wow, you really are an idiot.

34. Mxyzptlk unregistered

Butthurt detected. Go back to being meanest's jockrider.

37. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Lol you just detected yourself. Go back being Tim Cook's and Unordinary's dog.

11. Subie

Posts: 2364; Member since: Aug 01, 2015

They could still partner with Harman if they really wanted to. TCL puts JBL speaker tech into some of their phones, and JBL is owned by Harman. Where there's a will there's a way...

27. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

There is absolutely no flagship that has a HK sound system; how is this sad?

30. trojan_horse

Posts: 5868; Member since: May 06, 2016

"There is absolutely no flagship that has a HK sound system" There's the HTC One M8 Harman Kardon edition!

32. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

My bad (although M8 is 3 years old, hence irrelevant).

2. emcdonald75

Posts: 160; Member since: Nov 07, 2012

What do they want? More money?

3. sissy246

Posts: 7112; Member since: Mar 04, 2015

Yep What the company is really worth I don't know, but if I was a share

4. sissy246

Posts: 7112; Member since: Mar 04, 2015

Oops hit post on accident. If I was a share holder I would want as much as I could get.

9. combatmedic870

Posts: 984; Member since: Sep 02, 2015

Harmon is a very large company. They also own JBL and infinity on top of being harmon Kardon. So they make alot of auto makers higher end audio. Bmw, Mercedes, Volvo, subaru , Dodge, Jeep, Kia, mini and Chrysler. Then home entertainment systems, headphones and all of that good stuff.

10. combatmedic870

Posts: 984; Member since: Sep 02, 2015

On top of that, they seem to be the only audio manufacturer to make 2 ohm loud speakers. Great stuff. I'm currently personally running jbl gtos in my car. I hope they don't get bought out.

12. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

The shareholders just wanted more money..... They do this to try to drive share prices up. Just the big premium investors like the ones that sit on the board............ If I were Samsung I pull the rug and watch the stock tank to pre news prices.

13. zunaidahmed

Posts: 1183; Member since: Dec 24, 2011

Samsung will ruin HK imo, it's better if they are independent, I don't want a mid/higher end sound system company sunddenly become "sale as much cheap s**t you can" type of company.

15. tedkord

Posts: 17357; Member since: Jun 17, 2009

Then it's lucky that they're being bought by a company that makes the best products in almost every category they're in.

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