Investor sues Motorola Mobility, Google over $12.5-billion deal

A Motorola Mobility shareholder has reportedly filed a lawsuit against the company and Sanjay Jha, its CEO, alleging that the smartphone and tablet maker undervalued the firm when agreeing to sell it to Google for $12.5 billion.

That purchase price is a 63% premium over Motorola Mobility shares' closing price and also the largest amount that Google has ever agreed to pay in an acquisition. "The offered consideration does not compensate shareholders for the company's intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the company's value as a strategic asset for Google,” the suit states.

(Aug 18)