A former Louisiana Attorney General, Charles C. Foti, Jr., Esq., and the law firm Kahn Swick & Foti, LLC ("KSF") have announced an investigation into the proposed acquisition of Globalstar, Inc. (NasdaqGS: GSAT) by Amazon.com, Inc. (NasdaqGS: AMZN). The inquiry focuses on whether the acquisition price and the transaction process are adequate for Globalstar's shareholders.
"KSF's investigation is focusing on whether Globalstar and its board of directors violated state or federal laws in connection with the transaction," the firm stated, implying a focus on fiduciary duties.
Under the terms of the deal, Globalstar shareholders would receive $90.00 in cash or 0.3210 shares of Amazon common stock for each share they own. The stock portion of the offer has a value cap of $90.00 per share.
The investigation by Kahn Swick & Foti introduces a layer of legal uncertainty to the acquisition's closure. This could lead to increased volatility in Globalstar's stock as the deal could face delays, renegotiation, or potential termination. A negative outcome for the deal would likely erase the acquisition premium currently priced into the stock.
This article is for informational purposes only and does not constitute investment advice.
