Report: AFC investor trying to block Tellabs deal
An investor in Advanced Fibre Communications (AFC) is suing to block Tellabs Inc. 's proposed deal to acquire AFC, complaining that value placed on the agreement is "grossly inadequate."
Under terms of the original agreement announced last month, Tellabs agreed to put up $1.9 billion in cash and stock to buy AFC, which has grown into somewhat of a fiber-to-the-premises (FTTP) technology specialist. AFC shareholders are set to receive 1.55 shares of Tellabs common stock and $7 in cash for each AFC share.
According to Reuters, AFC investor Louis Bolgosano filed a complaint against the two companies this week in the Delaware Chancery Court, and is asking the court to stop or rescind the deal. If that does not occur, he will seek unspecified damages, Reuters noted, citing the lawsuit.
AFC and Tellabs have since held that the lawsuit is without merit.