An Adams Golf shareholder has filed suit in Delaware Chancery Court, alleging the sale of the equipment maker to TaylorMade-adidas Golf did not have high enough of a price tag.
Shareholder Daniel Tarsha alleges the $70 million sale price – a 9.5 percent premium over its March 18 stock price – does not reflect the value to TMaG-parent Adidas created by the purchase, according to Bloomberg News Service.
In the complaint, Tarsha further claims the terms of the sale prohibit Adams from earning a better bid from competing companies. Adams cannot solicit a higher price from other bidders and Adidas has a period to match any unsolicited takeover bid. If the deal does not get completed, Adams must pay a 4 percent fee to Adidas.
Tarsha wants the court to bring an injunction preventing the deal from being completed. The two companies hope to finish the transaction by mid-year.