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Copyright ©2011 Levi & Korsinsky, LLP
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| Magma Design Automation Inc. |
| Magma Design Automation Inc. (NASDAQ: LAVA) shareholder litigation in connection with alleged unfair takeover offer |
On November 30, 2011, Magma Design Automation
Inc. ("Magma" or the "Company") announced that it
has agreed to sell the Company to Synopsys, Inc.
(NASDAQ: SNPS). Under the terms of the
transaction, Magma shareholders will receive $7.35
Inc. ("Magma" or the "Company") announced that it
has agreed to sell the Company to Synopsys, Inc.
(NASDAQ: SNPS). Under the terms of the
transaction, Magma shareholders will receive $7.35
per share of Magma stock they own. The transaction has a total approximate value of $507 million
including the assumption of debt.
The investigation concerns whether the Magma Board of Directors breached their fiduciary duties
to Magma stockholders by failing to adequately shop the Company before entering into this
transaction and whether Synopsys, Inc. is underpaying for Magma shares, thus unlawfully harming
Magma stockholders. In particular, shares of Magma traded as high as $8.45 as recently as July 7,
2011. Furthermore, at least one analyst set a price target of $11.00 per share of Magma stock.
including the assumption of debt.
The investigation concerns whether the Magma Board of Directors breached their fiduciary duties
to Magma stockholders by failing to adequately shop the Company before entering into this
transaction and whether Synopsys, Inc. is underpaying for Magma shares, thus unlawfully harming
Magma stockholders. In particular, shares of Magma traded as high as $8.45 as recently as July 7,
2011. Furthermore, at least one analyst set a price target of $11.00 per share of Magma stock.
