Lufkin committee finds no violation of fiduciary duties in GE deal.
27 June 2013 - US oilfield and power transmission solutions provider Lufkin Industries Inc (NASDAQ:LUFK) said that its special committee had found that the company's board had not breached its fiduciary duties in the deal with US technology and financial services group General Electric Co (NYSE:GE).
Lufkin formed the committee after certain shareholders accused the board of having violated its fiduciary duties in approving the deal with GE and called on the board to take steps to remedy its conduct. While the committee's review was ongoing, one of the shareholders lodged a lawsuit in a move to block the deal. The court, however, dismissed the plaintiff's request for injunctive relief.
In a filing with the US Securities and Exchange Commission (SEC), Lufkin also said its board had reviewed the committeea[euro](tm)s findings and determined that it would not pursue any of the allegations as such a move would not be in the best interest of shareholders.
GE agreed to take over Lufkin in April for USD88.50 (EUR67.90) per share in cash, or a total of USD3.3bn. It received US regulatory approval in May.Country: USASector: Machinery/Engineering, Petroleum/Natural Gas/CoalTarget: Lufkin Industries IncBuyer: General Electric CoDeal size in USD: 3.3bnType: Corporate acquisitionStatus: Agreed
|Printer friendly Cite/link Email Feedback|
|Publication:||M & A Navigator|
|Date:||Jun 27, 2013|
|Previous Article:||IMIC further raises stake in takeover target Afferro.|
|Next Article:||MMX says discussing potential deal with Glencore, Trafigura, others.|