PR Newswire: news distribution, targeting and monitoring
2014
See more news releases in Legal Issues  | Legal Issues

Block & Leviton LLP Investigates MIPS Technologies, Inc. for Possible Breaches of Fiduciary Duty in Connection with Its Acquisition by Allied Security Trust and Imagination Technologies Group plc

Share with Twitter Share with LinkedIn

BOSTON, Nov. 6, 2012 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duties by the Board of Directors of MIPS Technologies, Inc. ("MIPS" or the "Company") (NASDAQ: MIPS) with regards to the proposed acquisition of the Company by Imagination Technologies Group plc ("Imagination") and the proposed acquisition of 498 of the Company's 580 patents by Bridge Crossing LLC, an acquisition vehicle of Allied Security Trust ("AST") in a two-part cash transaction.

Under the terms of the agreements, AST will acquire 498 of MIPS' total 580 patent assets for gross proceeds of $350 million.  MIPS will retain 82 patents, and will be granted a royalty-free, perpetual license to the patents sold to AST.  MIPS will also provide a restricted license to AST for the 82 retained patents.  Subject to consummation of the AST transaction, Imagination will acquire the operating business of MIPS, the remaining 82 patents, and license rights to the remaining patent properties of MIPS for $60 million.  The net proceeds of the two sales represent a price of approximately $7.31 per share.

This represents a paltry premium of less than 4% to the previous day's closing price of $7.02. MIPS stock traded above the offer price less than one week ago, reaching $7.32 as recently as November 1.  Indeed, the average analyst's target price for MIPS is $8.75 per share, nearly 20% more than the combined offers.

Block & Leviton's investigation seeks to determine, among other things, whether MIPS' Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisitions, and the fairness of the process by which the MIPS Directors considered and approved the transaction.

If you are a MIPS shareholder and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven Harte, at
(617) 398-5600 or email him at Steven@blockesq.com

Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws.  The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.  This notice may constitute attorney advertising.

Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
steven@blockesq.com  
(617) 398-5600

SOURCE Block & Leviton LLP



RELATED LINKS
http://www.blockesq.com

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release