Stockholder Sues To Prevent AskJeeves Sale
AskJeeves shareholder Richard Wiltsie is suing to block their sale to InterActiveCorp., saying the company is worth more than the $1.96 billion it is being sold for. His suit is based on the fact that roughly 11 months ago, on April 26, Jeeves stock was at $44.05, while IAC’s offer is much closer to the current, lower share price, giving stockholders IAC shares worth $28.24 per share. IAC’s offer is 17 percent higher than Ask’s March 18 closing price, but lower than the levels Wiltsie argues it would have returned to. It certainly isn’t an easy legal arguement to make, but Wiltsie is hoping it’ll hold up the sale and force Jeeves to open up the bidding. According to Credit Suisse, Jeeves could command a price 20-25% higher in an open bidding process.
(via Seattle Post-Intelligencer)
