An investor lawsuit against Hillshire Brands was filed this week by Shareholders Foundation Inc. The suit claims Hillshire executives breached their fiduciary duties by agreeing to sell the company to Tyson Foods, “too cheaply via an unfair process”
Meanwhile, Brower Piven, a securities litigation firm in Maryland, announced an investigation of Hillshire’s board of directors on possible breaches of fiduciary duties.
Class action suits and threat of suits are common in takeovers and mergers of publicly traded companies. Hillshire shareholders can collect $63 per share from the Tyson Foods cash deal worth a 70% premium, according to analysts who cover the companies.The all-cash transaction is valued at approximately $8.55 billion and expected to be completed in the next few months pending regulatory approval.