Harman shareholders file class action suit to oppose Samsung acquisition deal
by Milen Yanachkov / Jan 13, 2017, 8:43 AM
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.
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.
posted on Jan 13, 2017, 9:02 AM 1
Don't need Samsung stealing more companies.
posted on Jan 13, 2017, 9:40 AM 6
Posts: 7432; Member since: Dec 02, 2011
There is absolutely no flagship that has a HK sound system; how is this sad?
posted on Jan 14, 2017, 1:26 AM 1
Posts: 160; Member since: Nov 07, 2012
What do they want? More money?
posted on Jan 13, 2017, 9:06 AM 7
Posts: 7112; Member since: Mar 04, 2015
Yep What the company is really worth I don't know, but if I was a share
posted on Jan 13, 2017, 9:24 AM 3
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.
posted on Jan 13, 2017, 10:58 AM 0
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.
posted on Jan 13, 2017, 12:03 PM 5
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.
posted on Jan 13, 2017, 12:29 PM 4
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