Click here for printer friendly page
Gilat terminates merger agreement with Gores-led private equity consortium01/09/2008. Source: AltAssets. 
 Gilat Satellite Networks, an Israel-headquartered specialist in satellite networking technology, solutions and services, has notified the buyer consortium, including the Gores Group and Mivtach Shamir Holdings, that it was terminating the agreement and plan of merger entered into on 31 March 2008. The deal would have been worth about $475m.
Gilat cited 'the buyer's intentional breach of the merger agreement and failure to close the merger transaction.' However, Mivtach Shamir Holdings hit back, saying it would sue Gilat for breach of contract, according to Thomson Reuters.
Gilat said that the purchasers had made 'numerous verbal proposals […] which were substantially different from the agreed upon terms in the definitive agreement'.
The agreement provides for a termination fee of $47.3m to be paid to Gilat in the event of an intentional breach of the agreement by the purchasers.
Copyright © 2008 AltAssets
|
