Ancestry.com Inc., the world's largest family-history website, was sued by shareholders who contend they will be shortchanged in a proposed $1.6 billion buyout by Permira Advisers LLP.
Permira, a London-based private-equity firm, agreed to pay $32 a share for Ancestry.com, the companies said Oct. 22. That's 41 percent higher than Ancestry.com's closing price on June 5, the last day of trading before the company hired a financial adviser in connection with a possible sale.
"The consideration shareholders will receive is inadequate" and they "are being unfairly cashed-out" given the company's recent performance, investor John Heck said in a complaint filed in Delaware Chancery Court in Wilmington. A Michigan-based pension fund also filed a similar suit over the buyout.