Latest media reports reveal that Harman shareholders have filed a lawsuit against CEO Dinesh Paliwal and the board in a Delaware court. The lawsuit alleges that the CEO and the board did not act in good faith when making the deal with Samsung. The shareholders believe that the company was sold for too low a value and thus causes financial damage to the shareholders. They're also opposing Harman's agreement not to look for a competing bidder.
The acquisition is only going to pass if more than 50 percent of Harman's shareholders agree in a shareholders meeting that's due in the first quarter of this year. US hedge fund Atlantic Investment Management owns a 2.3 percent stake in Harman and it has already said that it will vote against the deal as the price is too low. Many minor shareholders are expected to follow in the same direction which might make things hard for Samsung as it looks to close this deal soon.
