March 4, 2013
Hopes of a bidding war for Acme Packet (NASDAQ: APKT ) are fading fast. The stock is now trading below Oracle's (NASDAQ: ORCL ) $29.25 a share offer, which was made at the beginning of February. At least one investor thinks the database king should be forced to pay more.
In a lawsuit filed in a Delaware court, Willard Love accuses Acme Packet's board of failing in their fiduciary duty to procure a fair offer for shareholders. Specifically, Love says that Oracle's bid comes at an "opportune time," with Acme's otherwise well-positioned business weakened by spending cuts among the carriers that are its primary customers.
Is that a fair assessment? Is Oracle getting Acme Packet on the cheap, or taking a risk buying a business that has yet to demonstrate a sustainable edge? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses these questions and more in the video below. Please watch, and then be sure to leave a comment to let us know what you think.
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