**Editor’s Note: Please click here for a recap of the biggest communications mergers in Q2 2013.**
Verizon Communications has been sued by a shareholder on the grounds that it’s proposed price for Vodafone’s 45 percent stake in Verizon Wireless is too high.
Three days after Verizon’s acquisition of Vodafone was announced, Natalie Gordon in a lawsuit defended Verizon shareholders by saying they are being “shortchanged,” Reuters reported.
The communications giant announced a week ago that it plans to buy Vodafone’s stake in VzW, giving Verizon full ownership of America’s largest wireless carrier. Verizon agreed to pay $59 billion in cash and $60 billion in stock and other sums for Vodafone.
According to Gordon, “it is evident that Verizon has overpaid” and that “Wall Street analysts concur.”
Gordon also noted Verizon’s share price, which was $48.60 on Aug. 29, then fell to $45.08 on Sept. 3, the first trading day after the purchase was announced.
The impending lawsuit seeks class-action status and has named Lowell McAdam, Verizon’s chief executive, and 12 other directors as defendants, accusing them of breaching their fiduciary duties.
“Verizon intends to defend itself vigorously,” said Randal Milch, Verizon executive vice president and general counsel, according to the Reuters report.