Monday, July 24, 2017

Whole Foods shareholder files suit to block Amazon deal

The Dallas News reported recently that a Whole Foods shareholder filed suit to block the proposed Amazon - Whole Foods merger on the grounds that the transaction understates the grocery chain's value and isn't being conducted with sufficient transparency.

The shareholder, who is seeking class-action status, says the proxy statement issued by Whole Foods failed to explain how the company calculated certain valuations. In addition, he says the statement also failed to disclose the timing and nature of all communications regarding the future employment and benefits relating to Whole Foods management.

The boards of directors for Amazon and Whole Foods have approved the deal, but it still has to be voted on by shareholders.

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