Fore investors fight GEC takeover bid
Tuesday 25 May 1999
The legal suit, filed in the District Court of Western Pennsylvania, alleges that Fore Systems' senior executives breached their duties to other shareholders by granting themselves $23m in stock options in advance of the deal being agreed with GEC.
The complaint claims that this manoeuvre to "grease the skids" created a privileged class of shareholders in contravention of the "all holder, best price" rules.
If GEC is forced to offer the same terms to all Fore Systems shareholders, it could increase the cost of the bid by $1bn (pounds 625m).
GEC is paying $35 a share for Fore Systems. The class action alleges that the top executives of the company were granted share options at prices ranging from $13.44 to $20.56 during the takeover negotiations with GEC.
GEC was not available last night for comment on the class action. When the deal was unveiled last month, Lord Simpson, the chief executive of GEC, said he expected to complete the takeover by the summer.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 3 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 4 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 UK weather: 'Coldest night of the year' tonight as freezing temperatures plummet to -10C
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...