Foster Wheeler Faces Class Action Over $3.3B AMEC Sale

Law360, New York (March 13, 2014, 7:43 PM EDT) -- A shareholder on Thursday slapped Foster Wheeler AG with a putative class action in New Jersey over the Swiss engineering company's acquisition by U.K. rival AMEC PLC, contending the £2 billion ($3.3 billion) deal represents an unfair price and that directors have breached their fiduciary duty.

Empire State Supply Corp. criticized the fact that Foster Wheeler shareholders will receive about 0.9 new AMEC shares and $16 in cash with a total value of approximately $32 for each Foster Wheeler share. Before the transaction's Feb. 13 announcement,...
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