Ingram 'undervalued' by Chinese takeover, says shareholder

Lawsuit aims to halt impending acquisition by Tianjin Tianhai

Ingram Micro sold itself "too cheaply and via an unfair process", according to a shareholder that wants to halt the distributor's impending takeover by Chinese conglomerate Tianjin Tianhai.

An unspecified stockholder has filed a lawsuit on behalf of all those who own shares in the broadliner. The plaintiff alleges that Ingram and its leadership have "breached their fiduciary duties" to those who hold stock in the New York-listed distribution firm.

The alleged wrongdoing relates to Ingram's acquisition by Tianjin Tianhai, which was announced last month and is currently going through the approval process. The lawsuit - the ultimate goal of which is to "halt the proposed takeover" - claims that the $6bn (€5.3bn) sale price "is grossly inadequate and undervalues Ingram Micro". Furthermore, the plaintiff believes the deal came to pass "via an unfair process".

The all-cash agreement equates to a $38.90-per-share sale price, and a press release announcing the lawsuit claims that, on Monday, Ingram shares closed trading at $36.26. The release also points out that the distributor's sales have grown strongly in recent years, from $36.32bn in 2011 to almost $46.5bn for the 53-week period to 3 January 2015.

Shareholders wanting to know more are encouraged to contact the Shareholders Foundation.