A group of disgruntled shareholders has taken legal action in the US in an attempt to block the $1.2bn acquisition of smartphone developer Palm by Hewlett-Packard, claiming the deal as it stands does not value Palm highly enough and stands to unfairly benefit major shareholders.
, the lawsuit centres around the value set to be realised by key shareholders, alleging that owners of common stock in Palm will receive less - $5.70 per share - than owners of preferred series B stock.
Holders of the B stock include Palm's largest shareholder, investment firm Elevation Partners, which is set to get over $8 per share.
The filing also claims that the offer for Palm was far too low, representing a discount on Palm's 12 April stock price and less than 50% of its total stock two months ago, according to a statement by investor advocacy group Shareholders' Foundation.
Neither HP nor Palm have yet commented.