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Applied Micro Circuits Corp. Acquisition May Not Be in the Best Interests of AMCC Shareholders

PR Newswire

NEW YORK, Dec. 9, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Applied Micro Circuits Corp. ("AMCC" or the "Company") in connection with the proposed acquisition of the Company by MACOM Technology Solutions Holdings, Inc. ("MACOM").  On November 21, 2016, MACOM announced it had reached a definitive agreement to acquire all outstanding shares of AMCC in a cash-and-stock transaction valued at $770 million.  Under the terms of the agreement, AMCC shareholders will receive 0.1089 of a MACOM share and $3.25 in cash for each AMCC share owned; representing consideration of $8.36.  

WeissLaw is investigating whether AMCC's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, prior to the announcement, at least one analyst set a target price of $11.00 per share, or nearly $3.00 above the consideration.  Moreover, according MACOM's President and CEO, the transaction is a strategic acquisition "which [] will be very accretive at all lines."  MACOM expects AMCC's market leading Connectivity business to be highly complementary to its product portfolio, accelerating top line growth, strengthening its competitive position with a new customer segment, and increasing its operating margins.  Finally, upon completion of the transaction, AMCC shareholders will own a mere 15% of the newly combined company.

Given these facts, WeissLaw is investigating the Board of Directors' decision to sell AMCC and whether AMCC shareholders will obtain their fair and proportionate share of the Company's continued success and future growth prospects.  If you own AMCC shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com.  

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/applied-micro-circuits-corp/

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/applied-micro-circuits-corp-acquisition-may-not-be-in-the-best-interests-of-amcc-shareholders-300376084.html

SOURCE WeissLaw LLP



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