Activision Sued by Investors

An interesting legal issue has arisen at Activision Inc. Specifically, Wayne County Employees' Retirement System of Wilmington, Delaware an investor in Activision, is suing the Company for failing to secure the best possible deal in its merger with Vivendi Games.

Under the terms of the proposed $18 billion merger, which was first announced in December, Activision would land up in a minority shareholder position in the merged entity. It was Activision’s alleged failure to secure a premium for agreeing to give up a majority position that motivated the lawsuit.

This type of legal action is not uncommon in large merger transactions but it will be interesting to see what impact it might have on the closing of the highly publicized merger.

More coverage at Delaware Online