Wednesday, March 2, 2011

BofA (BAC), Emergency Medical (NYSE:EMS) Sued by 3 Pension Funds

Three pension funds sued the board of Emergency Medical Service (NYSE:EMS) and Bank of America (NYSE:BAC) for what they alleged were conflicts in agreeing to sell the company at a price that was below market.

The shareholders accused the board of acting on behalf of EMS's by agreeing to a sale to private equity firm Clayton, Dubilier & Rice for $64 a share, 9 percent below its market price from the previous trading session.

The pension funds said Canadian private equity firm Onex Corp (TSE:OCX), which controls 82 percent of EMS voting power even though it only holds 31 percent of the equity, wanted to cash out of its investment and ignored smaller investors.

The lawsuit, filed in Delaware's Court of Chancery, also focused on the dual role of Bank of America, which was hired to advise the board of EMS, a leading provider of emergency medical services in the United States.




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