Just one week after the proposed takeover of Lowrance Electronics by Norway's Simrad Yachting for US$37 per share in cash, a group of Lowrance shareholders have taken the company and its directors to court in order to block the deal, according to a story on BusinessWire.com. The proposed merger is said to be valued at around US$215 million.
"The lawsuit alleges that the Board breached its fiduciary duties by entering into the acquisition agreement with Simrad and its subsidiary and by not making adequate disclosure in its SEC filings concerning the proposed acquisition," says the website. "The Company and the individual director defendants believe the lawsuit is without merit and intend to vigorously defend against it."
On January 30, 2006, Lowrance's board of directors unanimously approved the Simrad merger agreement, tender offer and merger, and recommended that Lowrance's shareholders tender their shares into the tender offer. Last Friday, a Lowrance shareholder sought to block the deal in Oklahoma's Tulsa County District Court, claiming that the proposed takeover was not in the shareholders' best interests and did not represent value for money.
(7 February 2006)
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