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To: John Hensley who wrote (6829)	1/7/1999 3:16:00 PM
From: Edward Hardaway	Read Replies (4) \| Respond to of 8359

From Bloomberg by: justlooking45 16601 of 16603 Helena Chemical Sues AgriBioTech for Libel, Breach of Contract<P>Memphis, Jan. 7 (Bloomberg) -- Helena Chemical Co., a privately held chemicals company, sued AgriBioTech Inc. for libel and breach of contract after the turf and forage-seed company failed to acquire the alfalfa-seed business of Helena's AgriPro Seeds Inc. subsidiary.<P>In a suit filed today in the U.S. District Court in Memphis, Tennessee, Helena said AgriBioTech breached an agreement under which it would acquire the alfalfa-seed business in a $70 million joint bid with Slater, Iowa-based Garst Seed Co.<P>On the eve of the closing, scheduled for Dec. 22, AgriBioTech unexpectedly said it didn't have the funds to complete the transaction, Helena said in court documents. Helena completed its transaction with Garst and entered a new letter of intent with AgriBioTech under which the transaction would close by Dec. 31. ''ABT again failed to fulfill its obligation to close as scheduled,'' Helena said in the documents. ''ABT offered various reasons related to the conduct of AgriPro for its refusal to close the transaction. These excuses are merely pretexts set forth to divert attention from ABT's inability to close.''<P>Las Vegas-based AgriBioTech declined to comment on the suit.<P>The libel charge follows an AgriBioTech press release three days ago saying it wouldn't acquire AgriPro's alfalfa-seed business because it had discovered ''adverse changes and inconsistent business practices'' at the company. It didn't identify the nature of the ''adverse changes.''<P>Memphis-based Helena is seeking unspecified damages from AgriBioTech, claiming its failure to complete the transaction constitutes a breach of contract. Helena also seeks damages for what it claims are ''false and defamatory statements regarding AgriPro.''<P>In addition, Helena wants the court to triple any damages it may be awarded because it says AgriBioTech's allegations were made in a ''willful and/or knowing violation'' of the Tennessee Consumer Protection Act.</SPAN></FONT> <!-- End of insert -->