Cisco and Telebit disclose shareholder lawsuit.SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 5, 1996--Cisco Systems Inc. and Telebit Corp. today announced that Cisco, Telebit and the directors of Telebit have been named as defendants in a purported class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax filed in the Middlesex County, Mass., Superior Court. The lawsuit relates to the recent announcement by Cisco of its intentions to acquire Telebit in a cash-for-stock merger and the related announcement by Telebit of Telebit management's intention, in conjunction with the merger, to form a new remote access products and services company, through a management buyout Management buyout (MBO) Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout See going private. of substantially all of Telebit's assets, other than its patents and MICA technology, which will be acquired by Cisco in the merger. Both the merger and the asset sale are subject to shareholder and regulatory approval. The suit alleges, among other things, that the merger and asset sale will not be in the best interest of Telebit's shareholders. The suit also alleges that the consideration being paid in connection with the asset sale and the proposed merger consideration of $13.35 per share (a premium of 21.4 percent per share over Telebit's share price immediately prior to announcement of the transactions and a premium of 52.6 percent per share over the 90-day rolling average price of Telebit shares preceding the announcement of the transactions) are below market value. The suit asks the court to enjoin To direct, require, command, or admonish. Enjoin connotes a degree of urgency, as when a court enjoins one party in a lawsuit by ordering the person to do, or refrain from doing, something to prevent permanent loss to the other party or parties. the closing of the transaction, or, alternatively, to award unspecified damages from the defendants. Cisco and Telebit believe that the suit is without merit and intend to defend it vigorously. Telebit (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : TBIT See terabit. ), of Chelmsford, Mass., is an innovator in developing remote access and digital modem technology for computer networks. Telebit's products are used worldwide in commercial applications. The company has offices in the United States, Europe and Asia and markets its products worldwide through value-added resellers, wholesale distributors and OEMs. Company information is available at World Wide Web site: http://www.telebit.com. Cisco Systems (NASDAQ: CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ) is the leading global supplier of internetworking solutions for corporate intranets and the global Internet. Cisco's products -- including routers, LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. and WAN switches, dial-up access servers and network management of software -- are integrated by Cisco IOS software to link geographically dispersed LANs, WANs and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) networks. Company news and product/service information are available at World Wide Web site http://www.cisco.com. Cisco is headquartered in San Jose, Calif. -0- Telebit is a registered trademark and MICA is a trademark of Telebit Corp. Cisco IOS and Cisco Systems are trademarks, and Cisco and the Cisco Systems logo are registered trademarks of Cisco Systems Inc. All other trademarks, service marks, registered trademarks or registered service marks mentioned in this document are the property of their respective owners. CONTACT: Telebit Corp. Brian Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , 508/656-9300 bcohen@telebit.com or Cisco Systems Inc. Mary Thurber, 408/526-8893 mthurber@cisco.com |
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