Two hours after the announcement, Jim Baaker put out a national press release looking for clients to sue Ikanos, Qualcomm or their insurers. Since the price was reasonable - 50% above the previous share price in a tough market for chips - the suit has little merit. But the companies might enrich the plaintiff's lawyer to avoid the time and expense of a trial.

Tallwood effectively controls Ikanos and is a very large shareholder. They have a strong incentive to only accept the best deal. DSL chipmakers face a challenging market. One estimate is $50/year but I think that's a little low. There's a very strong Chinese competitor, Mediatek, that's been winning market share. Chinese companies HiSilicon and Triductor are also growing. Ikanos has been entertaining offers for some time and there's no reason to think anyone else would have bid more. 

This is the downside of the U.S. plaintiff's' lawyer system, which in other cases can be positive.

Here's the invitation to sue.

IKANOS ALERT: Johnson & Weaver, LLP Investigates the Fairness of Price and Process in Proposed Sale of Ikanos Communications, Inc.; Encourages Investors to Contact the Firm for Additional Information

August 06, 2015 09:31 AM Eastern Daylight Time

SAN DIEGO--()--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the board of directors of Ikanos Communications, Inc. (NASDAQ: IKAN) breached their fiduciary duties in connection with the planned merger of the Company with a Qualcomm Incorporated subsidiary, Qualcomm Atheros, Inc. Ikanos designs, develops, markets and sells semiconductors and integrated firmware products for the connected home worldwide.

On August 6, 2015, Ikanos and Qualcomm announced that they had entered into a definitive merger agreement. Qualcomm will acquire all issued and outstanding shares of Ikanos common stock for $2.75 per share in cash.

The investigation concerns whether the Ikanos board failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock. Nationally recognized Johnson & Weaver, which focuses its practice on shareholder rights, is investigating whether the proposed deal price represents adequate consideration, especially given the Company’s promise of future revenue growth. Moreover, one Wall Street analyst has a $5.00 price target on the stock which is far more than the $2.75 offer price.

If you are an Ikanos shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (This email address is being protected from spambots. You need JavaScript enabled to view it.) by email or by phone at 619-814-4471. If emailing, please include a phone number where you can be reached.

About Johnson & Weaver, LLP:

Johnson & Weaver, 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.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.

 

Contacts

Johnson & Weaver, LLP
Jim Baker, 619-814-4471
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

IKANOS ALERT: Johnson & Weaver, LLP Investigates the Fairness of Price and Process in Proposed Sale of Ikanos Communications, Inc.; Encourages Investors to Contact the Firm for Additional Information

August 06, 2015 09:31 AM Eastern Daylight Time

SAN DIEGO--()--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the board of directors of Ikanos Communications, Inc. (NASDAQ: IKAN) breached their fiduciary duties in connection with the planned merger of the Company with a Qualcomm Incorporated subsidiary, Qualcomm Atheros, Inc. Ikanos designs, develops, markets and sells semiconductors and integrated firmware products for the connected home worldwide.

On August 6, 2015, Ikanos and Qualcomm announced that they had entered into a definitive merger agreement. Qualcomm will acquire all issued and outstanding shares of Ikanos common stock for $2.75 per share in cash.

The investigation concerns whether the Ikanos board failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock. Nationally recognized Johnson & Weaver, which focuses its practice on shareholder rights, is investigating whether the proposed deal price represents adequate consideration, especially given the Company’s promise of future revenue growth. Moreover, one Wall Street analyst has a $5.00 price target on the stock which is far more than the $2.75 offer price.

If you are an Ikanos shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (This email address is being protected from spambots. You need JavaScript enabled to view it.) by email or by phone at 619-814-4471. If emailing, please include a phone number where you can be reached.

About Johnson & Weaver, LLP:

Johnson & Weaver, 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.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.

 

Contacts

Johnson & Weaver, LLP
Jim Baker, 619-814-4471
This email address is being protected from spambots. You need JavaScript enabled to view it.

Tallwood effectively controls Ikanos and is a very large shareholder. They have a strong incentive to only accept the best deal. Ikanos has been entertaining offers for some time and there's no reason to think anyone else would have bid more.

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