Arbitron has settled with an investor who sued over its
proposed $1.26B buyout by Nielsen, admitting no wrongdoing but agreeing to
remove some of what the investor had claimed were obstacles to other bidders
and a higher price - and to make further disclosures about the process.
The radio ratings giant, which agreed the deal with Nielsen
in December, asked a Delaware
judge last Wednesday to approve the settlement, according to www.law360.com.
Under the deal, Arbitron would suspend some of the deal protection clauses
known as ‘don't ask-don't waive provisions’ which stop suitors who signed
confidentiality agreements related to auctions from coming in later with a
higher offer.
According to mrweb.com, the investor, Joseph Pace, filed the action in January and
alleged that these clauses had prevented shareholders from getting the maximum
value from the sale. Arbitron has also agreed to make further disclosures about
the buyout and about its financial adviser's relationship with Nielsen. In
return, Pace's class action would be dismissed with prejudice.
Arbitron reiterated that it believes the allegations to be
‘wholly without merit’ but said the settlement would remove ‘the burden and
expense of further litigation’.
The merger, having been approved by shareholders in April,
is still awaiting regulatory approval.
No comments:
Post a Comment