Claiming that $49 billion is not enough to pay for a satellite TV programming service "on the rise," a Los Angeles shareholder has filed a class action suit against AT&T (NYSE: T) and DirecTV (NASDAQ: DTV) over their proposed merger.
In the suit, which was obtained by Deadline, investor Teresa Silvestri claims that "DirecTV's recent financial performance is indicative of a company on the rise with growth potential yet to be recognized."
She also names as defendants DirecTV board members, including Chairman Mike White, as well as Peter Lund and Tony Vinciquerra, former top executives at CBS and Fox, respectively.
"The individual defendants have breached fiduciary duties of loyalty, good faith, due care and disclosure by … agreeing to sell DirecTV without first taking steps to ensure that plaintiff and class members would obtain adequate, fair and maximum consideration under circumstances and engineering the proposed acquisition to benefit themselves and/or AT&T without regard for DirecTV public shareholders," the suit adds.
Silvestri is being represented in the matter by Beverly Hills law firm Brodsky & Smith, which aggressively kicks the tires on mergers and acquisitions across a range of industries.
In outlining the alleged undervaluing of the acquired asset, the suit notes, "DirecTV is the premier pay TV provider in the United States and Latin America, with a high-quality customer base, the best selection of programming, the best technology for delivering and viewing high-quality video on any device and the best customer satisfaction among major U.S. cable and satellite TV providers."
The suit does not mention DirecTV's utter lack of broadband wherewithal.
For more:
- see this lawsuit
- read this Deadline story
Complete coverage: AT&T and DirecTV
Related links:
AT&T-DirecTV merger may provide much needed cover for Comcast
Moffett: AT&T-DirecTV deal will get done, but not without regulatory 'perspiration'