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Biotech / Medical : Catalytica Energy Systems, Inc. (CESI)
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To: Stu Bishop who wrote (1508)8/15/2000 10:09:37 AM
From: WTMHouston  Read Replies (1) of 1514
 
Looks like I am not the only one who thinks that most shareholders are getting screwed by this deal and that the only folks making any money are MSCP, et al.

Troy

<<Wilmington, Delaware, Aug. 9 (Bloomberg) -- Catalytica Inc., which makes pharmaceutical ingredients, was sued by shareholders who contend they'll be shortchanged in a planned $800 million acquisition by Holland's second-largest chemical maker, DSM NV.

Heerlen, Netherlands-based DSM said last week it would buy Catalytica for about $10 per share depending on tax liabilities -- keeping the drug division and spinning-off other Catalytica businesses that produce a tiny fraction of its revenue.

In a lawsuit filed Friday in Delaware Chancery Court in Wilmington, Catalytica stock owners Alan and Ronni Sims say directors violated their duty to shareholders to get the best price and agreed to sell the company to DSM to protect executive jobs.

``Neither the board nor anyone else has conducted any sort of market check or auction or any other attempt to solicit other third-party bidders for Catalytica,'' the suit said. It asks a judge to halt the transaction and award damages and legal fees.

Shares of Mountain View, California-based Catalytica, which reported $423.7 million in 1999 sales, were unchanged at 12 today. Shares of DSM, which reported $6.75 billion in 1999 sales, rose 0.80 euro to 34.80 in Frankfurt.

Aug/09/2000 17:09 ET

(C) Copyright 2000 Bloomberg L.P.
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