American arbitrage king Guy Wyser-Pratte plans to intervene yesterday in the legal manoeuvrings of Computer Associates International (CA), arguing that the board of Computer Sciences (CSC) denied company shareholders their right to decide whether to accept CA's hostile takeover bid.
Wyser-Pratte, president of New York arbitrage firm Wyser-Pratte and Co, announced on Friday that he would intervene in the case filed by CA in US District Court in Nevada. Wyser-Pratte beneficially owns 265,000 shares in CSC.
CSC directors "completely abdicated their fiduciary duties" to shareholders and "overstepped its authority and disenfranchised shareholders when it illegally and unilaterally changed the company's bylaws, and with the stroke of a pen eviscerated the existing voting rights of CSC shareholders," Wyser-Pratte said in a statement. The legal documents filed on his behalf are expected to mirror that argument, which also is the focus of CA's lawsuit.
A hearing on the case is set for March 16, the same day that CA's bid of $US108 per outstanding CSC share will expire. The total acquisition cost would have been $9.8 billion, reportedly the largest hostile takeover attempt in the computer industry.