David--- Hold on the cry babies with a gift have called the vultures in,,, it will get cheaper before it gets over 70 IMO. Looking to buy but waiting. I guess they did not notice the whole sector fell today or their stock is up over 40% already on the RUMOR. I love it... we will get a bargain when the tears dry...
Infoseek shareholders sue
Disney
By Bloomberg News
Special to CNET News.com
July 12, 1999, 4:00 p.m. PT
WILMINGTON, Delaware--Disney was sued by Infoseek
shareholders who contend the world's second-largest
entertainment company's buyout of the Internet search
company shortchanges other Infoseek stockholders.
Disney said today that it will buy the 57 percent of Infoseek
that it doesn't already own--valued at about
$1.7 billion at today's market price--by
swapping 1.15 shares in the new company,
called Go.com, for each Infoseek share.
That will give Disney a 72 percent stake in
Go.com.
In one of seven lawsuits filed in Delaware Chancery Court over
the buyout, Infoseek shareholder Marvin Kotrin contends that
Infoseek's board and Disney officials waited to do the swap
until the value of the Internet company's shares dipped.
"Disney timed the transaction to take advantage of the decline
in the market price of Infoseek's
stock," Kotrin said in the suit.
"The defendants have breached
their [legal duties] to Infoseek
shareholders by using their
control of Infoseek to force [Kotrin
and other holders] to exchange
their equity interest in Infoseek
and deprive [shareholders] of the
fair value to which they are
entitled," the suit added.
Disney and Infoseek officials
weren't immediately available to
comment on the suit.
Kotrin is asking a Delaware judge
to block Disney's acquisition of
Infoseek and to award Infoseek shareholders unspecified
damages.
Such shareholder suits have become commonplace in the
Delaware courts on the heels of the announcement of any large
acquisition. They rarely impede the progress of a purchase,
legal experts say.
Disney formed its Go Network search directory with Infoseek in
January to challenge rivals such as Yahoo and Lycos.
Even though it's ranked as one of the top five sites on the
Internet, the Go Network has been hampered by having two
management teams and a lack of a clear focus, analysts have
said. |
