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Avis-Zipcar does not really face a 'legal roadblock'

January 2, 2013: 3:28 PM ET

Nothing to see here... move along. Seriously.

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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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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