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DELTEK DEAL DRAWS SUIT

Deltek logoIt would probably be a bigger story if the proposed acquisition of Deltek by venture firm Thoma Bravo did not draw a suit. After all, most merger announcements are followed by notices from law firms investigating possible breaches of fiduciary duty by  directors.

One law firm, Levi & Korsinsky, notes that Deltek shareholders face a done deal. "An institutional investor representing 100% of Deltek's Class A and 59.5% of the Company's common stock has agreed to tender its shares. Accordingly, no further approval of the takeover is required by Deltek stockholders," according to the website. That investor is presumably New Mountain Capital. With Deltek, there are press statements  - Fortune in particular - questioning a run up of Deltek stock before the announcement.  Thoma Bravo is offering $13 a share in a deal valued at $1.1 billion. Bloomberg said the price was 24-percent higher than on June 11, the day before Deltek shared confidential information with possible buyers. The stock price is noted in a suit by shareholder Stephen Bushansky, which said the offer represented a 7.2-percent discount to the $14.01 per share closing price on August 2, the last trading date before the merger was entered. Bushansky is a busy person and a Google search revealed several suits in which he has taken the lead in class actions regarding mergers. The list includes Advanced Analogic, Superior Well Services, Archipelago Learning, Chevron, Progress Energy and Rome Bancorp. I am sure there are plenty of companies that offer an opening for suits. It would be interesting to see a won-loss record on these. Deltek has had no comment on litigation.
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