SOURCE: Shareholders Foundaton, Inc.

Shareholders Foundaton, Inc.

March 02, 2010 12:23 ET

Shareholders Foundation Announces Investor Lawsuit Against Smith International, Inc. Board

SAN DIEGO, CA--(Marketwire - March 2, 2010) - The Shareholders Foundation, Inc. announces that a lawsuit has been filed in Texas State Court on behalf of current investors in Smith International, Inc. who purchased their SII shares before February 19, 2010, over alleged breach of their fiduciary duties.

On Sunday, February 21, 2010 Smith International, Inc. and Schlumberger Ltd announced a definitive merger agreement in which the companies would combine in a stock-for-stock transaction under which Smith International, Inc. shareholders (SII) will receive 0.6966 shares of Schlumberger Ltd (SLB) in exchange for each Smith International (SII) share or based upon the undisturbed closing stock prices for both companies on February 18, 2010, a value of $45.84 per Smith International (SII) share. According to Smith International, the Boards of Directors have unanimously approved a definitive merger agreement and the offer represents a 37.5% premium.

But Smith International, Inc. shares traded at $63.12 per share in September 2008, and over $82 per share in July, June, and May 2008.

According to the complaint the plaintiff alleges that Smith International's directors breached their fiduciary duties by, among other things, causing Smith International, Inc. to enter into the proposed transaction at an allegedly inadequate and unfair price and agreeing to transaction terms that improperly inhibit alternative transactions.

Those who currently are investors in shares of Smith International, Inc. and purchased their shares before Feb. 19, 2010, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is an investor advocacy group 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 group offers help, support, and assistance for every shareholder, and investors find answers to their questions and equitable solutions to their problems. 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 Information

  • CONTACT:
    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108