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When $13.7 billion isn't enough: Whole Foods shareholder files to block Amazon's acquisition

Nearly a month after Amazon and Whole Foods Market Inc. announced a $13.7 billion merger agreement, a Whole Foods shareholder filed a lawsuit looking to block the acquisition, according to a report in the Austin American-StatesmanThe shareholder has reportedly said the deal undervalues Whole Foods and is being made without sufficient transparency.

According to the article, shareholder Robert Riegel claims that "Whole Foods’ proxy statement filed on July 7 is misleading and failed to disclose information important to stakeholders." It also said he claims the proxy statement did not disclose how certain valuations were calculated.

It has been a busy few months at Whole Foods. In April Jana Partners became the second-largest investor in the company. At the time the group, unrelated to the current lawsuit, said it acquired the shares because it believed they were "undervalued and represent an attractive investment opportunity." 

Jana said it intended to have discussions with the Whole Foods board of directors and management regarding the company's chronic underperformance for shareholders as well as changing the board and senior management composition. A month later Whole Foods unveiled new and accelerated initiatives to increase profitability, improve operational performance and enhance shareholder value. A few weeks later the Amazon deal was announced.