McCormick & Schmick’s Seafood Restaurants was sued by a stockholder who contends the shares are undervalued in a USD 131.6 million takeover offer by Landry’s.
Ray Zahnow said in the suit that McCormick directors are duty-bound to get the best price for the stock, and shirked their obligations in agreeing to the $8.75-per-share deal.
“The board has breached their fiduciary duties by agreeing to the proposed transaction for grossly inadequate consideration,” Zahnow said in a Delaware Chancery Court filing made public today in Wilmington, Del.
McCormick of Portland, Ore., and Houston-based Landry’s announced the tender offer in a statement Nov. 22, saying the McCormick board determined the acquisition was fair and in the best interests of stockholders.
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