(Updates with comment from RightNow in seventh paragraph.)
Oct. 26 (Bloomberg) -- A RightNow Technologies Inc. shareholder sued over the software maker’s plan to sell itself to Oracle Corp. for $1.5 billion, calling the deal “fundamentally unfair.”
The proposed transaction stems from a flawed process that lacked an open auction and includes deal protections that favor Oracle, shareholder Sanjay Israni said in the complaint filed yesterday in Delaware Chancery Court.
“Neither RightNow’s management, nor its board, has fully explained why the company, or its current management, needs to abandon their deliberately conceived internal growth strategies for a short-term profit,” Israni said in the complaint.
Under the proposed deal announced this week, RightNow shareholders will get $43 a share, or 20 percent more than Bozeman, Montana-based RightNow’s closing price on Oct. 21.
The acquisition will help Oracle, based in Redwood City, California, add software that helps companies serve customers using call centers, the Internet and social networks.
Israni seeks to represent all RightNow shareholders in his request for a court order barring the transaction.
Jaia Zimmerman, a RightNow spokeswoman, declined by e-mail to comment on the suit, saying the company hadn’t reviewed the complaint.
RightNow rose a 1 cent to $43.30 at 4 p.m. in Nasdaq Stock Market composite trading. The shares gained 83 percent this year.
The case is Israni v. RightNow Technologies Inc., CA6977, Delaware Chancery Court (Wilmington)
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