Jamdat investor sues to stop EA purchase

When Electronic Arts announced last week that it was purchasing wireless game provider Jamdat Mobile, it named a purchase price of $680 million. On top of assuming outstanding stock options, that figure represents a purchase price of $27 per share, a solid premium above its $22.45 market-open share price.

Reuters is reporting even that inflated sale price for the company wasn't enough to please one of Jamdat's investors, who has filed suit in Los Angeles Superior Court to stop the sale. According to the report, shareholder Elliott Fox has asked the court to declare the acquisition agreement unlawful and unenforceable, alleging that Jamdat's directors weren't getting "the highest price reasonably available."

While Wedbush Morgan Securities analyst Michael Pachter said EA "bought Jamdat for a fair price if they intend to get big," some questioned the premium paid to become an instant player in the growing mobile market. Piper Jaffray's Anthony Gikas said the $680 million figure was actually $200 million too high. Even so, Gikas favored EA's purchase in a note to investors, telling them, "don't sweat the small stuff."

Jamdat shares skyrocketed in the days following the initial announcement, and closed trading today at $26.65, slightly off its $26.75 close yesterday.