Zhongpin Investor Sues to Halt CEO's $418M Buyout Bid

Law360, Wilmington (April 4, 2012, 8:01 PM EDT) -- A Zhongpin Inc. investor launched a class action in Delaware state court Tuesday challenging a $417.6 million bid by the Chinese meat processing company's CEO to take the company private, calling the deal opportunistic and harmful to public shareholders.

Zhongpin CEO Xianfu Zhu’s $13.50-per-share offer is “wholly inadequate” considering the company’s recent stellar performance and management’s refusal to shop the company to third parties, shareholder Phillip Meeks said in a complaint filed in Delaware Chancery Court.

“Zhu knows that the company possesses numerous assets that will...
To view the full article, register now.