WeissLaw LLP Investigates Cavium Inc. Acquisition

WeissLaw LLP Investigates Cavium Inc. Acquisition

PR Newswire

NEW YORK, Nov. 28, 2017 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Cavium Inc. ("CAVM" or the "Company") (NASDAQ: CAVM) in connection with the proposed acquisition of the Company by Marvell Technology Group Ltd. ("MRVL") (NASDAQ: MRVL).  On November 20, 2017, the Company announced a definitive agreement for MRVL to acquire all outstanding shares of CAVM in a cash-and-stock deal.  Under the terms of the agreement, the Company's shareholders will receive $40.00 in cash and 2.1757 shares of MRVL for each CAVM share they own, representing consideration of $84.14 based on MRVL's November 17 closing price.

WeissLaw is investigating whether CAVM's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, at least one analyst set a target price of $94.00 per share, or approximately $10.00 above the per-share consideration.

Moreover, according to the acquisition announcement, MRVL will benefit greatly from this deal, namely:

  • The diversification of its revenue base and end-markets;
  • The expansion of its serviceable addressable market to more than $16 billion; and
  • The acceleration of its product development, which will better enable MRVL to meet the growing demand for data storage.

Finally, upon completion of this transaction, which is expected to propel MRVL as a leader in the infrastructure solution industry, CAVM shareholders will own a meagre 25% of the combined company.

Given these facts, WeissLaw is investigating whether CAVM's Board acted in the best interests of CAVM's public shareholders to maximize shareholder value prior to entering into the agreement.  If you own CAVM shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com.

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/cavium-inc/ 


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