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United States. Securities and Exchange Commission

Investigation into Entropic Communications' Sale to MaxLinear

Strategic Insights

— 1 min read

Lawyers Willie Briscoe and Patrick Powers, representing firms The Briscoe Law Firm, PLLC and Powers Taylor LLP, are investigating the sale of Entropic Communications, Inc. to MaxLinear, Inc. The proposed transaction entails Entropic shareholders receiving $1.20 in cash and 0.22 of MXL stock for each share owned. However, this consideration is significantly lower than the 52-week high and has raised concerns among investors. The investigation aims to determine if the Board of Directors of Entropic is acting in the best interests of shareholders and if they have considered alternative options to the acquisition.

Key Takeaways:

  • The proposed transaction between Entropic Communications and MaxLinear is being investigated for potential unfairness to Entropic shareholders.
  • The consideration of $1.20 in cash and 0.22 of MXL stock per share is lower than the 52-week high and has been questioned by at least one analyst.
  • Notably, an analyst with Yahoo! Finance estimates the true inherent value of Entropic's stock to be as high as $5.00 per share.
  • The investigation focuses on the Board of Directors' actions and the adequacy of the process in reviewing and acting on the proposed transaction.
  • Entropic shareholders may have grounds for a potential claim, and the firms of Briscoe Law Firm, PLLC and Powers Taylor LLP are seeking information from affected investors.
  • The law firms involved have experience in complex litigation and shareholder rights advocacy, with over 20 years of experience between them.

Statistics:

  • $1.20: The amount of cash that Entropic shareholders will receive for each share owned.
  • 0.22: The amount of MXL stock that Entropic shareholders will receive for each share owned.
  • $5.00: The estimated value of Entropic's stock as per an analyst with Yahoo! Finance.
  • 52-week high: The historical high value of Entropic's stock, which is higher than the proposed consideration.

Sources:

  • Willie Briscoe and The Briscoe Law Firm, PLLC
  • Patrick Powers and Powers Taylor LLP
  • Entropic Communications, Inc. (NasdaqGS: ENTR)
  • MaxLinear, Inc. (NYSE:MXL)

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