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.
Peaches Geldof cause of death: 'Heroin addict' socialite had taken fatal dose of drug, inquest concludes
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned
Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
Peaches Geldof inquest: Tragic final moments of socialite's life reveal she lied to husband about failed heroin tests
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...
£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...