Fore investors fight GEC takeover bid
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.
Feat of engineering: Incredible photographs show construction beneath New York's Second Avenue
Charles Saatchi accepts police caution for assault after trying to dismiss Nigella Lawson row as 'playful tiff'
Google, BT and Yahoo! agree plan to tackle child porn
Exposed: Edward Erin, the doctor whose faked asthma drug test results proved fatal
Charles Saatchi: Taking caution for holding Nigella Lawson's throat was 'better than it hanging over all of us'
- 1 Freedom fighters? Cannibals? The truth about Syria’s rebels
- 2 Breaking the Silence: In the reality of occupation, there are no Palestinian civilians – only potential terrorists
- 3 Special Report: US troops are stationed in Japan to protect the nation. But to sex workers in Okinawa, they bring fear, not security
- 4 Vice pulls 'breathtakingly tasteless' fashion shoot glorifying the suicides of famous female authors from Sylvia Plath to Virginia Woolf
- 5 Iran to send 4,000 troops to aid President Assad forces in Syria
iJobs Money & Business
£65000 - £85000 Per Annum: The Green Recruitment Company: The Green Recruitmen...
£400 per day: Orgtel: A top tier banking client urgently requires a Senior Bus...
£250 - £350 per day: Orgtel: Financial Crime Analyst,Midlands, Banking, AML/Sa...
£20,000 - £45,000 OTE: Co-Venture: Working for this company will give you a ch...