$886M Otsuka Buyout Cheats Astex Investors, Suit Says

Law360, New York (September 12, 2013, 3:02 PM EDT) -- An Astex Pharmaceuticals Inc. investor launched a putative class action Wednesday aimed at blocking its planned $886 million buyout by Japanese drugmaker Otsuka Holdings Co. Ltd., saying the deal shortchanges shareholders of the oncology drug developer.

Gloria Schwartz's complaint, filed in Delaware Chancery Court, claims Astex's board breached its fiduciary duties to shareholders by approving a takeover that allows Otsuka to snap up the company at a bargain price, despite Astex's recent strong financial performance and prospects for future growth.

“The consideration being offered to Astex...
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