CSC goes to court to block CA takeover bid

CSC goes to court to block CA takeover bid


Computer Sciences Corp (CSC) has gone to court in an attempt to block the hostile takeover bid launched by Computer Associates (CA) last week, according to published reports.

Officials at CSC and CA were not immediately available to comment.

According to the Associated Press and Reuters, CSC filed a lawsuit alleging CA's management offered attractive stock options to CSC chief executive Van Honeycutt in an effort to buy his loyalty during preliminary merger talks.

The lawsuit said CA Chairman Charles Wang "personally" offered Honeycutt a total of $US50 million in guaranteed stock options and a seven-year base salary. Honeycutt rejected the offer, according to the AP.

In addition, the lawsuit alleges CA is engaging in "an unfair, unlawful and fraudulent scheme" to try to buy CSC at less than its fair value.

CA launched its bid for CSC last week, tendering a cash offer of $US108 per share for all of the outstanding common stock of CSC.

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