3Com Hit With Shareholder Suit Over $2.7B HP Deal

Law360, New York (November 13, 2009, 3:25 PM EST) -- Networking and security services provider 3Com Corp. has been hit with a shareholder class action seeking to block the $2.7 billion merger agreement with Hewlett-Packard Co. announced Wednesday.

Plaintiff David B. Shaev filed the action Thursday in Delaware Chancery Court, claiming the proposed merger agreement, which involves HP paying stockholders of Marlborough, Mass.-based 3Com $7.90 a share, constitutes a breach of 3Com's fiduciary duties owed to public shareholders, and argues that 3Com's directors should have pushed for a higher price.

The complaint alleges the defendants are...
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