NEW YORK (TheStreet) -- Shares of Spansion (CODE) are higher by 2.4% to $28.53 in afternoon trading Wednesday, as the flash memory-based embedded systems solutions company is being investigated by law firm Ryan & Maniskas to review potential claims against its board of directors concerning possible breaches of fiduciary duty and other possible legal violations related to its merger deal with Cypress Semiconductor (CY) .
Ryan & Maniskas launched the investigation into Spansion to determine whether its board is acting in the company's shareholders' best interests in connection with the sale process.
Under the terms of the proposed transaction, Spansion shareholders will receive 2.457 Cypress shares valued at $25.63, for each Spansion share of common stock they own.
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The two companies agreed to an all-stock merger valued at $4 billion on Monday, and the combined company is expected to generate more than $2 billion in revenue a year.
Separately, TheStreet Ratings team rates SPANSION INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SPANSION INC (CODE) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow."