Late last year it was announced that Samsung would be acquiring premium audio systems maker, Harman, responsible for Harman/Kardon speakers and connected cars. Samsung was looking to buy up the company for a cool $8 billion but it turns out, Harman shareholders aren’t happy with the deal and are looking to stop Harman CEO, Dinesh Paliwal from making it happen.
After the initial announcement, it was believed that the acquisition would complete around mid-2017. However, while Harman’s CEO agreed on the $8 billion buyout fee, shareholders apparently did not and have branded the deal as “flawed and undervalued”.
Now, a class action lawsuit has been filed at an equity court in Delaware, USA, with which shareholders hope to block Harman’s sale in hopes that the deal could be renegotiated, while also pitching the sale to other potential buyers. In order for the acquisition to go through, more than 50 percent of shareholders will need to agree to it.
KitGuru Says: This was already going to be the largest acquisition Samsung has ever made, so I do wonder how much more they would be willing to shell out- if they are even willing to budge in the first place.