CDK Global Stockholder Calls $8.3B Brookfield Deal Unfair

By Leslie A. Pappas (May 6, 2022, 5:15 PM EDT) -- A stockholder of CDK Global Inc. has sued the automotive retail technology company over its pending $8.3 billion merger with Brookfield Business Partners, asserting that financial adviser Morgan Stanley and CDK directors breached their fiduciary duties when structuring the deal.

In a proposed class action filed late Thursday in the Delaware Court of Chancery, CDK stockholder Jeffrey Sponder says the deal price is inadequate, out of line with management's own best estimates, and unfair to CDK Global's stockholders.

Morgan Stanley & Co. LLC, named as one of the defendants in the complaint, used improper risk adjustments to "shoe-horn" the $54.87 per-share...

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