Red Hat Hit With Securities Suits Over $34B IBM Deal

Red Hat Inc. faces two would-be class suits over IBM’s proposed $34 billion acquisition of the open source software firm, both alleging it didn’t disclose necessary financial information.

Red Hat’s proxy statement didn’t include all the information shareholders need to evaluate the merger, according to complaints filed Dec. 18 and 19 in the U.S. District Court for the District of Delaware.

The proxy statement for the proposed International Business Machines Corp. acquisition didn’t include the data underlying Guggenheim Securities and Morgan Stanley’s valuation of Red Hat, according to the complaints. It also left out information about the firms’ potential conflicts ...