Angry Virgin Mobile investor sues over Sprint acquisition

Sprint’s acquisition of Virgin Mobile seemingly came out of nowhere, but in the ensuing week it seems most people are okay with the idea. It helps Sprint boost its prepaid portfolio. Typically prepaid isn’t a big money maker, but as we’ve seen in recent quarters, the pace is starting to pick up. So perhaps Sprint picked up an undervalued asset. At least one person thinks they did: James D. Seymour, a Virgin Mobile investor who has filed suit in Trenton, NJ. He calls the acquisition price, $483 million in stock, “grossly unfair.” It is, per his complaint, “substantially below” market value. I doubt this case goes anywhere, but we now know that not everyone is happy with the deal. There’s also no word on when this deal will close, though an educated guess would pin it at late 2009, early 2010.

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One Response

1. The Man Says
   

   While they’re looking into Virgin, here’s a question: I keep hearing that they offer a $10 a month prepaid plan for people who can’t afford their more expensive plans but I don’t see it on their web-site. where is it? It’s not on their website.

   
   Posted on August 23rd, 2009 at 12:16 pm

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