Computer Sciences files suit to stop Bear Stearns from aiding CA in bid
Article Abstract:
Computer Sciences sued to prevent Bear, Stearns & Co. from assisting software maker Computer Associates International (CA) in its $9.18 billion, or $108-a-share, tender offer. Computer Sciences filed the lawsuit in US District Court in Los Angeles to seek a temporary injunction against CA's offer, as well as prevent Bear Stearns and Bear Stearns Senior Managing Director Michael Urfirer from assisting in the offer. Bear Stearns is a Bear Stearns Cos. subsidiary. The latest move deepens the hostilities between Computer Sciences and CA. Both companies already have sued the other over the takeover bid, and are presently courting major shareholders to side with them. The Computer Sciences suit charges Urfirer with fraudulent use of private financial information about Computer Sciences. Urfirer, who is advising CA, denied allegations that he obtained the information in an unrelated transaction that took place 15 days before CA announced its takeover intentions.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Computer Associates blames chairman of Computer Sciences for lack of accord
Article Abstract:
Computer Associates International (CA) is blaming Computer Sciences Chmn and CEO Van B. Honeycutt for the two companies' inability to forge a friendly agreement. Charles Wang, Chmn and CEO of CA, said attempts at a friendly deal failed because Honeycutt focused only on his new role at a combined company and his compensation. CA has presented a hostile $9.18 billion bid for Computer Sciences, a computer-services business. Wang's attacks represent the first important CA reaction to a Computer Sciences lawsuit that seeks to halt the CA bid. The suit, filed in a California state court in Los Angeles, accused the CA bid of already causing more than $50 million in damage to Computer Sciences' business. Other allegations charge CA with 'commercial bribery' and an improper attempt to 'buy' Honeycutt's support by offering a lucrative compensation package. Wang characterized the Computer Sciences suit as an obstructionist tactic.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Comment about this article or add new information about this topic:
- Abstracts: Computer Sciences opens door to sale while rejecting CA's $9.18 billion bid. Computer Associates opens hostile bid of $9.18 billion for Computer Sciences
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