Avis-Zipcar does not really face a ‘legal roadblock’

Jan 02, 2013

FORTUNE -- Oh my goodness. Is it possible that Avis Budget Group's (car) proposed $500 million deal to buy Zipcar (zip) won't go through, because a law firm thinks that shareholders possibly could have done better than $12.25 per share?

Take a look at these headlines, via Techmeme:

Has this ever happened before? I mean other than this deal announced Monday. And this other deal announced Monday. And yet another deal announced Monday.

Seriously select tech press, get a grip.

Almost every single time a public company agrees to be acquired, whether by another public company or by a private equity firm, a bunch of plaintiff's lawyers launch an "investigation." In virtually no cases do they amount to anything more than press releases and, in some cases, a tiny settlement for shareholders (albeit a decent paycheck for very little work by plaintiff attorneys).

These lawyers are Wall Street ambulance chasers, hoping to slice off a bit of M&A lucre for themselves. The chances that this "investigation" scuttles the Avis-Zipcar deal is lower than the chances that Hertz comes back over the top for $15 per share. And, even then, the plaintiff's lawyers would probably have questions...

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