By Lisa Burroughes, 30 June 1998 15:04
NEWS TCI's merger with AT&T has hit a stumbling block. A TCI shareholder has filed a suit against the cable operator on grounds of unfair dealing. Hernando Nieto claims the deal gives TCI directors a higher share price option than the shareholders, and is seeking an injunction against the merger or a revocation of the deal. John Matthews, analyst at Ovum, said: "This is bog standard practise in the US takeover regime. This action is exploiting the particulars of the case, but what happens a lot is that a smart lawyer or shareholder uses the situation to make a few extra millions. It is a very common occurrence and usually has no effect on the merger." According to the lawsuit, the TCI directors discriminated against the shareholders by agreeing to terms of the merger which give the directors an "an unwarranted premium over and above" what the shareholder will receive. AT&T is also accused of aiding and abetting the unfair dealing.
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