Post by just_an_ant on Jan 31, 2006 20:27:21 GMT -5
www.insidebayarea.com/businessnews/onthemove/ci_3460618
By Matthew Bunk and Jason Dearen, BUSINESS WRITERS
OAKLAND — Disgruntled shareholders filed a class action lawsuit Friday against Pixar Animation Studios Inc., claiming that a buyout offer last week from The Walt Disney Co. was too low and stood to mostly benefit top brass.
The complaint argues that a judge should stop the deal, arguing it will enrich Pixar executives and give them plum positions at the newly combined animation powerhouse while leaving investors out in the cold.
"Absent judicial intervention, the company's shareholders will be stripped of their ownership interests through improper and illegal means," according to the lawsuit filed in Alameda County Superior Court.
Burbank-based Disney and Emeryville-based Pixar agreed to a $7.4 billion deal that would put the maker of "Toy Story" under Disney's ownership. Also, it would make Pixar's chief executive Steve Jobs the largest individual shareholder in Disney and give him a seat on the entertainment giant's board.
Wall Street hailed the deal as a win-win for both companies, which have enjoyed a lucrative partnership in movie distribution. But some analysts say the deal favored Disney.
Even before the lawsuit, David Miller, an analyst at Sanders Morris Harris, noted that Pixar shareholders should have received better compensation. "We believe the deal is a better one for Disney than it is for Pixar and sympathize with Pixar shareholders who are left wondering why Mr. Jobs sold out at $58.69 when he could have received a heftier premium," he wrote Wednesday.
If a majority of shareholders for both companies approve, the deal could be finalized as early as this summer. But these shareholders are trying to derail the effort, which would pay them a 2.5 percent premium over the closing price of $57.26 on Jan. 18, when newspapers first reported a potential deal.
Led by the only named plaintiff, shareholder Jonathan Levene, the suit complains that the selling price did not accurately reflect the value of Pixar.
Pixar didn't return a call Monday for comment.
The complaint will undergo certification of the class members before the matter would go to trial.
By Matthew Bunk and Jason Dearen, BUSINESS WRITERS
OAKLAND — Disgruntled shareholders filed a class action lawsuit Friday against Pixar Animation Studios Inc., claiming that a buyout offer last week from The Walt Disney Co. was too low and stood to mostly benefit top brass.
The complaint argues that a judge should stop the deal, arguing it will enrich Pixar executives and give them plum positions at the newly combined animation powerhouse while leaving investors out in the cold.
"Absent judicial intervention, the company's shareholders will be stripped of their ownership interests through improper and illegal means," according to the lawsuit filed in Alameda County Superior Court.
Burbank-based Disney and Emeryville-based Pixar agreed to a $7.4 billion deal that would put the maker of "Toy Story" under Disney's ownership. Also, it would make Pixar's chief executive Steve Jobs the largest individual shareholder in Disney and give him a seat on the entertainment giant's board.
Wall Street hailed the deal as a win-win for both companies, which have enjoyed a lucrative partnership in movie distribution. But some analysts say the deal favored Disney.
Even before the lawsuit, David Miller, an analyst at Sanders Morris Harris, noted that Pixar shareholders should have received better compensation. "We believe the deal is a better one for Disney than it is for Pixar and sympathize with Pixar shareholders who are left wondering why Mr. Jobs sold out at $58.69 when he could have received a heftier premium," he wrote Wednesday.
If a majority of shareholders for both companies approve, the deal could be finalized as early as this summer. But these shareholders are trying to derail the effort, which would pay them a 2.5 percent premium over the closing price of $57.26 on Jan. 18, when newspapers first reported a potential deal.
Led by the only named plaintiff, shareholder Jonathan Levene, the suit complains that the selling price did not accurately reflect the value of Pixar.
Pixar didn't return a call Monday for comment.
The complaint will undergo certification of the class members before the matter would go to trial.
