Netscape sued over price of proposed AOL merger
The price isn't right, says litigious shareholder
A Netscape shareholder has sued the company following official confirmation that it is indeed in meger talks with AOL. The proposed merger -- still dependent on the two companies reaching an agreement to do so -- values Netscape at nearly $4 billion, based on stock valued at $38.19 per share. However, Friday's closing price was $39.1875 per share, and shareholder Ernest Hack, who filed the suit yesterday, feels Netscape's merger stock value should match that figure. He wants the court to block any merger until a higher prices is agreed by Netscape and AOL. Netscape's directors have an obligation to their shareholders to get the best price for the company, said Hack's lawyers, and this action seeks to force them to follow that obligation. Following the appearance last week of hints that the two companies were in talks, both companies filed details of their discussions yesterday morning before Monday's trading began. ® See also
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