CKX Sued Over Fuller Bid
“American Idol” parent company CKX is facing a shareholder lawsuit demanding the corporation seek competing bids to a recent $600 million offer from a group led by former CEO Simon Fuller.
In a complaint filed in Delaware Chancery Court, investor Richard Nierenberg said the $6.45 per share bid undervalues the company, which should instead be put to auction, according to Bloomberg News.
“Delaware law requires directors to take all steps reasonably required to maximize the value stockholders will receive,” the suit said, adding that the “$600 million offering price provides inadequate consideration.”
CKX announced last month that “there can be no assurance that it will enter into any agreement,” Bloomberg said.
Fuller previously tried to take the company private in 2007, but the deal eventually faltered over tightening credit conditions.