A trade union pension plan has launched a lawsuit against Graeme Hart's $6.2 billion takeover of Pactiv Corporation, calling the deal “fundamentally unfair” to Pactiv shareholders.The pension fund – a plumbers and pipe-fitters union plan
A trade union pension plan has launched a lawsuit against Graeme Hart’s $6.2 billion takeover of Pactiv Corporation, calling the deal “fundamentally unfair” to Pactiv shareholders.
The pension fund – a plumbers and pipe-fitters union plan – filed
its case in Illinois state court in Chicago today, Bloomberg reported.
Pactiv, chairman Richard Wambold, seven board members, Graeme Hart's Rank
Group Investments and its Reynolds Group unit were all included in the lawsuit.
Pactiv is the biggest acquisition in the US packaging industry for many years and takes Mr Hart's Rank Group to world leadership in the sector.
The $33.25-a-share purchase price represented a 39% premium over Pactiv’s $23.97 May 14 closing price before the disclosure of negotiations.
However, the union plan said the price was fundamentally unfair and company directors had breached their fiduciary duty to shareholders by undervaluing the company.
They are seeking an order blocking the transaction until Pactiv’s directors obtain the best possible price for shareholders.
They said Pactiv had “excellent prospects for future growth.”
