Del. Court To Hear Complaint Against Cheyenne Merger Nov. 6
ISLANDIA, N.Y. (Dow Jones)--A Delaware Chancery Court set Nov. 6 as the date it will begin hearing a motion related to a class action complaint against the proposed sale of Cheyenne Software Inc. (CYE) to Computer Associates International Inc. (CA).
In a press release, the two companies said they believe the motion is without merit.
As reported, Computer Associates International unit offered to acquire all Cheyenne Software outstanding shares for $30.50 a share. The offer, which expires at midnight EST on Nov. 8, is contingent on enough shares being tendered that Computer Associates will own a majority of Cheyenne's outstanding shares on a diluted basis following the transaction.
The class action complaint, originally filed against Cheyenne and its board, alleges Cheyenne's directors breached their fiduciary duties by rejecting an earlier request by McAfee Associates Inc. (MCAF) to negotiate a merger.** The complaint also alleges Cheyenne failed to disclose certain investment banker analyses to shareholders**, and it names Computer Associates as a party to the litigation.
Both Cheyenne and Computer Associates deny any wrongdoing and plan to "defend the action vigorously."
Computer Associates develops, licenses and supports integrated computer products.
Cheyenne Software, Roslyn Heights, N.Y., is a software developer.
"Dow Jones News Service"
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**Does anyone have information on the (supposedly) undisclosed analyses?
-Tony G. |
