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Since the news of the proposed acquisition of LSI Corp. by Avago Technologies (AVGO - Analyst Report) hit the market, a number of law firms have initiated investigations on the legitimacy of the deal.

They are investigating any breach of fiduciary duty and violation of state rules and regulations and the primary target has been the board of directors of LSI.

The latest entrant into the group of law firms is Kirby McInerney LLP. Earlier, law firms such as Ryan & Maniskas, LLP, Levi & Korsinsky and Harwood Feffer LLP started similar investigations to determine whether the LSI board has sufficiently discharged its duties related to the sale and to verify if Avago Technologies has adequately paid for the LSI shares.

Avago Technologies entered into a definitive agreement to acquire LSI for $6.6 billion in cash. Per the agreement, LSI shareholders will receive a cash payment of $11.15 for each share. The transaction is expected to be completed within the first half of 2014, subject to regulatory approvals and fulfillment of customary closing conditions.

It is worth noting that LSI shares jumped 38.6% to close at $10.96 on Dec 16 post the announcement of the acquisition deal. This substantial jump in the share prices has resulted in a year-to-date return of 45.8% on the LSI shares.

We believe that LSI was a potent acquisition target as the company has a broad range of products that enables it to serve a diverse clientele in the hard disk drive (HDD), server and networking end markets.

Moreover, LSI Corp. is gaining rapid traction in the growing PCIe flash adapter market segment which is a big positive for the company. However, the current investigations may prove to be a roadblock to the successful completion of the deal.     

Currently, LSI has a Zacks Rank #3 (Hold). Other better-ranked stocks in the technology sector that investors may consider are Stratasys Ltd. (SSYS - Analyst Report) and Marvell Technology Group (MRVL - Snapshot Report). While Stratasys holds a Zacks Rank #1 (Strong Buy), Marvell has a Zacks Rank #2 (Buy).

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