Feeds

Netscape sued over price of proposed AOL merger

The price isn't right, says litigious shareholder

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

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
AOL takes shape as major threat to Microsoft
Microsoft lawyer claims AOL deal makes lawsuit dead parrot
AOL and Sun plan to carve-up Netscape

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.