FYI, here is the article about that lawsuit Citidude was talking about. It took me a second to recall that the suit, which does not directly pertain to CMGI, but to Engage's purchase of Flycast.
The link: yahoo.cnet.com
The article:
Investor sues to block Engage's purchase of Flycast
By Bloomberg News
March 16, 2000, 5:10 p.m. PT
WILMINGTON, Del.--Engage Technologies, a unit of Internet venture fund CMGI that profiles online consumers' buying habits, was sued by a shareholder who says directors will pay too much in a $5 billion purchase of Flycast Communications and another company.
Andover, Mass.-based Engage said Jan. 20 it would buy San Francisco-based Flycast, which tracks responses to ads, and Andover-based Adsmart Communications, an advertising network, from CMGI for about 32 million shares of Engage stock.
Engage shareholder Doris B. Sollod says in a suit filed yesterday in Delaware Chancery Court in Wilmington that CMGI bought Flycast on Jan. 14 for about $1.89 billion in stock but will receive about $5 billion for the company because Engage's share price has risen meteorically--from $77 per share Jan. 20 to $186 March 1--and will soon split.
"As a result, (CMGI) will reap wrongful windfall profits on the intended sale of Flycast to Engage, (and) Flycast is not worth $5 billion or anywhere near that sum," Sollod says in the suit. She asks a judge to stop the sale and award damages and fees.
Officials of Engage, which reported $16 million in 1999 sales, were not immediately available to comment on the lawsuit. Shares of Flycast, with $8.03 million in 1998 sales, last traded at $122.50.
Shares of Engage rose $4 to $126 today. CMGI, also based in Andover, Mass., with $175.6 million in 1999 sales, rose $2.81 to $124.19.
Bloomberg L.P. All rights reserved.
-CodeMogul |
