Pioneer Holders Sue to Stop Acquisition
Friday June 8, 6:15 pm ET
Pioneer Cos. Shareholders Sue Board Over Pending Acquisition by Olin Corp.
NEW YORK (AP) -- Pioneer Cos., which makes chlorine, caustic soda and other products, said Friday that a group of its shareholders are suing to stop rival chemical company Olin Corp.'s pending acquisition of the company.
The lawsuit accuses Pioneer's board of breach of fiduciary duty and other violations stemming from the pending sale to Olin, Pioneer said in a filing with the Securities and Exchange Commission.
Pioneer, the members of its board and Olin are named as defendants in the lawsuit, Pioneer said.
Olin announced plans in May to buy Pioneer for $35 per share in cash, creating a large supplier of products used in water treatment and various industrial segments.
Each company's board has approved the deal, which Olin said in May was expected to close in the second half of the year, subject to shareholder and regulatory approvals.
The suit was filed in District Court of Harris County, Texas, 129th Judicial District.
Pioneer shares fell 5 cents to $34.27 in aftermarket trading, after rising 3 cents in the regular session, while Olin shares rose 28 cents to $19.87 in the regular session.
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