Gilat Files Suit Against Investment Group
[Satellite Today 11-05-08] Gilat Satellite Networks Ltd. has filed lawsuits against Mivtach Shamir Holdings, LR Group, Gores Capital Partners, and DGB Investments, accusing the companies of failing to pay a termination fee due to Gilat after the consortium of investors withdrew an offer to buy the company, Gilat announced Nov. 5.
The consortium of investors entered an agreement in March 2008 to purchase Gilat Satellite Networks for an aggregate value of $475 million in an all-cash transaction. Under the terms of the agreement, Gilat shareholders would have received $11.40 per share in cash, a premium of about 38 percent over Gilat’s average closing share price during the 30 trading days ended April 25, 2007.
Gilat then informed the consortium that it had 72 hours to complete the definitive merger agreement or Gilat would seek a $47.3 million termination fee, which the buyers are now refusing to pay.
No court date has been set for Gilat’s lawsuit.
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