Arbitron Shareholder Sues To Block Sale To Nielsen
January 28, 2013 at 3:55 AM (PT)
ARBITRON shareholder JOSEPH PACE has begun a putative class action suit against the announced $1.26 billion buyout of the radio ratings company by NIELSEN HOLDINGS NV. LAW360.COM reports, "the complaint alleges that ARBITRON's board breached their fiduciary duty by approving NIELSEN's $48-per-share offer, claiming the deal announced DEC. 18th was conducted in slapdash fashion by a conflicted adviser."
"The proposed transaction is the product of a flawed process that is designed to ensure the sale of ARBITRON to NIELSEN on terms preferential to NIELSEN, but detrimental to plaintiff and the other public stockholders of ARBITRON," PACE wrote in the complaint. continuing "The proxy, which recommends that ARBITRON shareholders vote in favor of the proposed transaction, omits and misrepresents material information about, among other things, the events leading up to the board’s approval of the merger agreement and the financial analyses conducted."
The suit also claims ARBITRON's board failed to fully engage other bidders, and "seeks to enjoin the buyout until better terms can be arranged."