Robbins Arroyo LLP: Acquisition of Linear Technology Corporation (LLTC) by Analog Devices, Inc. (ADI) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Linear Technology Corporation (NASDAQ: LLTC) by Analog Devices, Inc. (NASDAQ: ADI). On July 26, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Analog Devices will acquire Linear Technology. Under the terms of the agreement, Linear Technology shareholders will receive $46.00 cash and 0.2321 shares of Analog Devices common stock for each share of Linear Technology common stock, for a combined value of $60.05 based on Analog Devices’ last closing price on July 25, 2016.
Is the Proposed Acquisition Best for Linear Technology and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Linear Technology is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On July 26, 2016, Linear Technology reported strong earnings results for its fourth quarter and full 2016 fiscal year. Linear Technology reported revenues of $373.8 million for the three months ended July 3, 2016, a 3.5% increase from the same period of the prior year. Linear Technology also reported net income of $132.4 million for the three months ended July 3, 2016, a 3.1% increase from the same period of the prior year. In commenting on these results, Linear Technology Chief Executive Officer Lothar Maier remarked, “We are pleased that we have bounced back with three sequential quarters of revenue growth after suffering a significant decline in the first fiscal quarter. Our industry leading gross margin and operating margin percentages each improved at 76.4% and 45.9% while earnings per share increased $0.02 to $0.54.”
In light of these facts, Robbins Arroyo LLP is examining Linear Technology’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Linear Technology shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Linear Technology shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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