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Motorola stockholder sues, seeks a higher price from Google

Posted: , by Alan F.

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Motorola stockholder sues, seeks a higher price from Google
Motorola Mobility shareholder John W. Keating is not happy with the 63% premium that Google is paying for the company and is filing a complaint in the state courthouse in Chicago against both Motorola and its Chairman and CEO Sanjay Jha. Google announced the $40 per share offer the morning after Motorola's stock closed at $24.47. Since the deal was announced, Motorola has traded above $38 most of the time. Despite the price that Google is offering, Keating says that the Mountain View based firm is buying Motorola Mobility for pennies on the dollar.

The suit also names Google and the 9 member Motorola Mobility board as defendants. Keating claims that the offer doesn't take into consideration the value of the company to Google, the stand-alone worth of Motorola Mobility, and the resurgence experienced by the Schaumburg, Illinois based company ever since launching the Motorola DROID late in 2009. That device started the amazing surge in market share that Android has had and Keating says that stockholders will not be able to benefit from the future success of Motorola Mobility.

Motorola's value to Google is greatly magnified by the 17,000 patents that the company will receive if the deal to buy Motorola is approved by the anti-trust division of the Department of Justice. The boards of both firms have already agreed to the deal. Keating's filing seeks class action status which means that all Motorola Mobility stockholders who owned the stock during a period to be announced, will be able to claim a part of whatever damages the court might decide to order, if any. Usually in these cases, if the class action is successful, only the attorney's score a decent payday while the class gets a very small amount.

Motorola spokeswoman Jennifer Erickson says the company has yet to see the complaint and couldn't comment on it. Google spokeswoman Katelin Todhunter-Gerberg said in an email that the company refuses to comment. Motorola Mobility was spun off from Motorola earlier this year. For those who like to know such things, the case is Keating v. Motorola Mobility Holdings Inc., 11CH28854, in the Cook County, Illinois, Circuit Court, Chancery Division (Chicago).

source: BusinessWeek via Gizmodo

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posted on 18 Aug 2011, 01:14 1

1. Whateverman (Posts: 3284; Member since: 17 May 2009)

Always someone trying to get more than what they deserve.

posted on 18 Aug 2011, 12:29

6. lolz (unregistered)

Funny thing is, he is suing AFTER the stock price of MOTO went 70% UP.

posted on 19 Aug 2011, 01:59

9. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)

well what else wud it do... and its 60...

I don't really think he has a case-- he might as well sell too because its not gonna go up with google in control...

posted on 18 Aug 2011, 01:26 2

2. remixfa (Posts: 14605; Member since: 19 Dec 2008)

yea cuz ya know.. 63% more than its worth is such a bad deal.. especially since moto mobility is running negative right now. stupid person probably owns an iphone anyways.. lol

posted on 18 Aug 2011, 02:57

3. rex0422 (Posts: 30; Member since: 12 Aug 2011)

it's life: people want more and more, and they can do anything to achieve their needs. 63% premium is still not enough? and that guy is suing motorola and chairman + CEO?

posted on 18 Aug 2011, 06:47 1

4. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

You know, Keating was also the last name of Roarke's rival in the Fountainhead, the one destroyed by his own inability to do for himself.

posted on 18 Aug 2011, 16:31

7. InspectorGadget80 (unregistered)

STOCKHOLDERS ARE THE GREEDIEST PEOPLE in the business next to CEO and the board of directors

posted on 18 Aug 2011, 22:32

8. ljruble (Posts: 16; Member since: 07 Dec 2010)

$40 per share seems fine to me, its $12 per share more than I bought in at last year so won't hear me complaining

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