010446 IBP Says Judge Clears Way For Tyson LawsuitApril 22, 2001Dakota Dunes, SD - IBP Inc. said a Delaware judge cleared the way for its lawsuit seeking to force poultry giant Tyson Foods Inc. to honor a $3.2 billion agreement to acquire the company. Delaware Chancery Court Leo Strine denied Tyson's motion to dismiss or stay the case, which will allow the lawsuit to go to trial as scheduled on May 14, IBP said. IBP, based here, filed the suit on March 30, one day after Tyson backed out of the deal, citing breaches of the merger agreement, including accounting irregularities and alleged fraud at one of IBP's subsidiaries uncovered during a federal probe. “We are pleased the court has affirmed our position and look forward to presenting the specifics of our case next month,” IBP General Counsel Sheila Hagen said in a statement. A spokesman for Springdale, Ark.-based Tyson was not immediately available for comment. At the time Tyson withdrew its bid late last month, it filed a separate suit against IBP in Arkansas, seeking to recover undisclosed compensation from IBP for having to terminate the merger agreement.
E-mail: sflanagan@sprintmail.com |
