Shareholders Foundation Announces Lawsuit Against Airvana, Inc. Board of Directors

2009年 12月 24日 星期四 01:21 BJT
 

SAN DIEGO, Dec. 23, 2009 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc.
announces that a lawsuit has been filed in Delaware Chancery Court on behalf of
current investors in Airvana, Inc. (Nasdaq:AIRV), who purchased their AIRV
shares before December 18, 2009, over alleged breach of fiduciary duty by the
board of directors of Airvana, Inc.

On Friday, Airvana, Inc. announced that it has entered into a definitive
agreement with 72 Mobile Holdings, LLC, owned by affiliates of S.A.C. Private
Capital Group, LLC, GSO Capital Partners LP, Sankaty Advisors LLC and
ZelnickMedia, in a transaction valued at approximately $530 million. Under the
terms of the agreement, at closing, each share of Airvana common stock will be
exchanged for $7.65 cash. According to Airvana, the boards of directors of both
companies approved the agreement and the offer represents a 23 percent premium
to AIRV stockholders.

According to the complaint, the plaintiff alleges that the board of directors of
Airvana failed to ensure that the shareholders will receive maximum value for
their shares and that the board of directors failed to conduct an appropriate
sale process.

Shares of Airvana, Inc. (AIRV) traded at $7.57 per share after the announcement
and at $6.20 per share the day before the announcement.

But the plaintiff alleges that the proposed transaction is one-sided because it
contains a "no solicitation" provision, a $15 million termination fee provision,
will only benefit the insiders, but not the Airvana shareholders, and the true
value of Airvana's stock is much greater than the consideration offered in the
proposed transaction. The plaintiff claims the offer should be higher because
the company introduced recently new updated products, like the HubBub Connected
Home Femtocell (a new model of the HubBub CDMA Femtocell), and the financial
results are promising, including outstanding invoices of about $36.4 million and
a recent payment of $39.6 million payment from Nortel.

Those who currently are investors in shares of Airvana, Inc. and purchased their
shares before Dec. 18, 2009, should contact the Shareholders Foundation, Inc. by
e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554. The
Shareholders Foundation, Inc. is an investor advocacy group which does research
related to shareholder issues and informs investors of securities class actions,
settlements, judgments, and other legal related news to the stock/financial
market. The group offers help, support and assistance for every shareholder, and
investors find answers to their questions and equitable solutions to their
problems. The Shareholders Foundation, Inc. is not a law firm. The information
is provided as a public service. It is not intended as legal advice and should
not be relied upon.

The Shareholders Foundation, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6931

-0-
CONTACT:  Shareholders Foundation, Inc.
          Trevor Allen
          +1 (858) 779-1554
          3111 Camino Del Rio North
          Suite 423
          San Diego, CA 92108
 

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