Class action filed to block Nvidia buying Mellanox

Eyal Waldman and Jensen Huang Photo: Kadia Levy

In a proposed class action in a California federal court, shareholder Marc Henzel claims that JP Morgan failed to provide details about Mellanox's rate of growth, "Legal360" reports.

A shareholder in Israeli big data connectivity chipmaker Mellanox Technologies Ltd. (Nasdaq:MLNX) has filed a proposed class action in a California federal court seeking to block the company’s impending $7.36 billion acquisition by Nvidia Corp., US legal website Law360 reports.

The plaintiff, Marc Henzel, claims that Mellanox violated several federal laws because it did not give enough details to the US Securities and Exchange Commission (SEC) about the deal to be acquired by Nvidia. In particular, he cites that investment bank JP Morgan, which was Mellanox's financial advisor in the deal, did not provide data about Mellanox's rate vof growth as part of its analysis about the transaction.

Law360 quotes Henzel, "When a bank presents an analysis on the fairness of a deal to shareholders, it must present the methodology of the value and the main figures that it used for the analysis." The plaintiff is demanding that the deal be halted until a report is published that will include up to date analyses.

Nvidia is expected to complete the acquisition of Mellanox for $125 per share by the end of the year.

Mellanox declined to comment on the matter.

Published by Globes, Israel business news - en.globes.co.il - on May 2, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Eyal Waldman and Jensen Huang Photo: Kadia Levy
Eyal Waldman and Jensen Huang Photo: Kadia Levy
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