A PYMNTS Company

US: Amazon-Whole Foods: Shareholder sues in attempt to block takeover

By  |  July 16, 2017

A federal lawsuit aims to thwart Amazon’s proposed US$13.7 billion merger with Austin-based Whole Foods, claiming that the transaction understates the grocery chain’s value and isn’t being conducted transparently enough.

The suit, brought by Whole Foods shareholder Robert Riegel, charges that a proxy statement filed last week by the company misleads and withholds significant information from stakeholders.

“The proxy statement states that, in connection with negotiating the merger agreement, Amazon had preliminary discussions with certain Whole Foods executive officers regarding Amazon’s desire to retain such officers following the closing,” the suit says. “However, the proxy fails to disclose the timing and nature of all communications regarding the future employment and/or benefits relating to Whole Foods management.”

Full Content: 512Tech

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.