Microsoft takeover bid goes to court

Groove takeover not so groovy...

The former marketing boss of Groove Networks is taking the company to court to try and stop it being taken over by Microsoft.

Michael Matthews, an ex-sales and marketing vice president at Groove, failed in his first attempt to stop the deal. His request for an injuction to temporarily block the takeover was rejected by a Delaware judge on Friday, according to Bloomberg.

The case alleges that the deal discriminates against some, more junior, shareholders. Documents lodged with the court reveal that Microsoft is paying $120m for Groove Networks. It will use the firm's file sharing and collaboration products to improve its Office applications.

But Matthews believes the money is not being distributed fairly. Mathews has been chief marketing officer at Amdocs since April 2003.

Microsoft said it was buying Groove for an undisclosed amount in early March. MS will also take on Ray Ozzie - the founder of Groove and creator of Lotus Notes.

The case could continue to court.®

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