Cavium (CAVM) Alert: Johnson Fistel Investigates Proposed Sale of Cavium, Inc.; Are Shareholders Getting a Fair Deal?

Cavium (CAVM) Alert: Johnson Fistel Investigates Proposed Sale of Cavium, Inc.; Are Shareholders Getting a Fair Deal?

PR Newswire

SAN DIEGO, Nov. 20, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Cavium, Inc. ("Cavium") (NASDAQ: CAVM) breached their fiduciary duties in connection with the proposed sale of the Company to Marvell Technology Group Ltd. ("Marvell") (NASDAQ: MRVL). Cavium designs, develops, and markets semiconductor processors for intelligent and secure networks in the United States and internationally.

On November 20, 2017, Cavium announced that it had signed a definitive merger agreement with Marvell. Under terms of the deal, Marvell will exchange $40 in cash and 2.1757 shares of its stock for each Cavium share outstanding, which based on Nov. 3 "undisturbed" prices equates to about $80 a share. However, shareholders will be subject to the future price fluctuation of Marvell 's stock price.

The investigation concerns whether the Cavium board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Cavium shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given the Company's outlook for future revenue and earnings growth, and one Wall Street analyst has a $90.00 price target on the stock.

If you are a shareholder of Cavium and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.

About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com

 

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SOURCE Johnson Fistel, LLP

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