Investor Lawsuit Against Acquisition of Entropic Communications, Inc. (ENTR) Announced by Shareholders Foundation

SAN DIEGO, Feb. 12, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor, who currently holds shares of Entropic Communications, Inc. (ENTR), filed a lawsuit in an effort to stop the proposed takeover of Entropic Communications, Inc. by MaxLinear for a value of approximately $3.01 per share.

Investors who purchased shares of Entropic Communications, Inc. (Nasdaq: ENTR) prior to February 3, 2015, and currently hold any of those NASDAQ:ENTR shares, have certain options and should contact the Shareholders Foundation, Inc. at [email protected] or call +1 (858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ENTR stockholders by agreeing to sell Entropic Communications, Inc. too cheaply via an unfair process to MaxLinear, Inc.

On February 3, 2015 MaxLinear, Inc. and Entropic Communications, Inc. (Nasdaq: ENTR) announced that they have signed an agreement for MaxLinear, Inc to acquire Entropic Communications, Inc. Under the terms of the proposed transaction Entropic Communications, Inc. (Nasdaq: ENTR) shareholders will receive $1.20 per share in cash and 0.22 shares of MaxLinear, Inc. common stock for each Entropic Communications, Inc. (Nasdaq: ENTR) common share outstanding. Based on MaxLinear's closing stock price on February 2, 2015, the merger consideration is valued at approximately $3.01 per Entropic Communications, Inc. (Nasdaq: ENTR) share.

However, the plaintiff claims that the proposed consideration NASDAQ:ENTR shareholders will receive is grossly inadequate and undervalues Entropic Communications, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:ENTR shares at $5.00 per share and NASDAQ:ENTR shares traded in early 2014 as high as $4.74 per share. In addition, the plaintiff claims that the process is also unfair to NASDAQ:ENTR stockholders.

Those who currently hold Entropic Communications, Inc. (Nasdaq: ENTR) shares have certain options and should contact the Shareholders Foundation, Inc. at [email protected] or call +1 (858) 779 - 1554.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

CONTACT: Shareholders Foundation, Inc.
         Michael Daniels
         +1 (858) 779-1554
         [email protected]
         3111 Camino Del Rio North
         Suite 423
         San Diego, CA 92108

Source: Shareholders Foundation, Inc.

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