Weiss & Lurie says it is examining the proposed sale of Hypercom Corp. to VeriFone Systems Inc. for legal issues. The New York-based firm says it is looking at “possible breaches of fiduciary duty and other violations of law by members of the board of directors of Hypercom.”
VeriFone announced Nov. 17 it had struck a deal to buy the Scottsdale, Ariz.-based terminal maker (
The roughly $485 million all-stock deal, including net debt assumed by VeriFone, would give investors a fixed ratio of 0.23 shares of VeriFone common stock for each Hypercom share they own.
“Weiss & Lurie is investigating whether Hypercom’s board acted in the best interests of shareholders in approving the proposed transaction and whether Hypercom’s board properly sought to maximize shareholder value,” the firm says.
Hypercom resisted an earlier hostile bid from VeriFone valued at $280 million, arguing that its third-quarter earnings, announced Nov. 2, would justify a higher price than VeriFone’s September offer.
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