Motorola shareholder sues Google, demands higher price

Google Inc's recent proposal of taking over Microsoft mobility at a price of US$ 12.5 billion, $ 40 per share.  While Motorola's stocks closed at $24.47 when the deal was made public, the prices have risen up since then and have traded over $38 most of the time. While most of the industry experts feel that 63% premium agreed upon by Google is a little too steep, John W. Keating, a Motorola Mobility shareholder doesn't seem to be happy with the deal.



The lawsuit argued Motorola was just beginning to bear some positive results from the restructuring this year that split the company in two. John W. Keating is filing a complaint in the state courthouse in Chicago against both Motorola and its CEO Sanjay Jha. The suit also names Google and the other 9-member Motorola Mobility board as defendants. John feels that the price of $12.5 billion is not good enough keeping in mind the 17,000 patents currently held by Motorola and their importance to Google, along with the current market price of the company.

"Instead, any economic upside will enrich Google," said the lawsuit.

Keating also condemned the board members, claiming they violated their duty to investors, and accused Google to assist and abet a violation of these duties. Keating said that he would also seek class action, and asked the court to prohibit the completion of the transaction.