GEC deal faces $1bn US law suit
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.
Board creates magnetic field to achieve lift
Company reveals $542m investment in start-up building 'a rocket ship for the mind"
Singer says the track was 'force-fed down people's throats'
techThe original free dating app will remain the same, developers say
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 4 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 5 The inventor of the Facebook 'like' button says he never made a 'dislike' button because he feared the 'unfortunate consequences'
Ukraine crisis: Donetsk 'tactical missile' explosion at factory sends blast wave across rebel-held city
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Oscar de la Renta dead: Legendary US fashion designer dies after long cancer battle aged 82
Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Lord Freud hangs on as MPs of all parties 'call for his head' over disability comments
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...