RALEIGH – An investor in Raleigh-based Red Hat on Tuesday filed a lawsuit seeking to block a shareholder vote on the firm’s $34 billion merger with IBM.
The investor identified as Charles Orgel filed the suit in federal court in Delaware.
Red Hat shareholders are expected to vote on the deal at a special meeting set for Jan. 16. The IBM-Red Hat merger was announced in October.
The suit says Red Hat and members of its board in a proxy statement calling for approval of the deal by shareholders omitted or misrepresented information “needed to make an informed decision,” according to the legal news site Law360. The proxy statement was filed on Dec. 12.
Red Hat reports mixed financials in wake of $34B IBM deal news
“In short, unless remedied, Red Hat’s public stockholders will be forced to make a voting or appraisal decision on the proposed transaction without full disclosure of all material information concerning the proposed transaction,” the filing says.
The deal calls for Red Hat shareholders to receive $190 per share.
More details are available online.
Big Blue opens its arms, wallet, to Red Hat, but did deal cost too much at $34B?
