Investors sue to stop Tesla’s acquisition of Maxwell Technologies

Tesla Batteries 18650 Li-ion Cells

A group of investors has filed a class action lawsuit in San Diego federal court to stop Tesla’s acquisition of battery and ultracapacitor innovator Maxwell Technologies. Bloomberg Terminal reports (via Electrek)  that the litigants are calling the price of $4.75 per share (over $200 million total) and the process that led to the deal “unfair.”

This sort of rebellion by a group of investors is not unusual in the world of corporate acquisitions, and it’s unclear at this point whether the deal is in jeopardy or not.

Maxwell’s board unanimously approved Tesla’s offer. However, Electrek reports that the deal was a long time in the making – the two companies had been in discussions for years, and there was a lot of back and forth about the price. Tesla made several offers that were refused before the two sides came to an agreement.

 

Source: Electrek

  • Eric Verhulst

    Are these investors completely nuts? “Unfair”? Worse than socialists.

    • TheOtherPaul

      Worse than socialists? You mean they’re capitalists??!! Wow.

  • dogphlap dogphlap

    Well Maxwell do have some valuable intellectual property which up to this point they have not been able to translate into profit (par for the course these days). Still I understood this was to be a share swap so they would still have a part of Maxwell (a much smaller part though) AND Tesla. Seems to me those patents might be of interest to Texaco (see demise of EV1) or some other entity keen on stifling electric vehicle progress. Such technological leadership (if it is that, looks like it could be) has a short use-by date before it gets by-passed by further developments, so Maxwell don’t dither too long or you may have nothing of value to trade.

  • Wildschwein

    How can I join lawsuit, Teslas price offered is just rediculus. Does anybody knows, if investors are foreced to give stocks to Tesla? I will not sign to give my stocks away!

  • mipak

    I hope you win the lawsuit Tesla. You offered a fair price. Investors are just spoiled these days.