Hedge Fund Settle Washington Group Lawsuit

Oct 19 2007 | 12:36pm ET

A New York hedge fund has settled their lawsuit with engineering and construction concern Washington Group International over the Boise, Idaho-based company’s proposed sale.

Purchase, N.Y.-based Schultze Asset Management had sued to stop the $2.6 billion takeover by URS Corp., alleging that Washington Group and its board of directors “breached their fiduciary duties because they failed to choose financial projections that fairly valued the company’s worth to maximize shareholder value.”

Earlier this week, proxy advisor Institutional Shareholders Service advised owners of Washington Group stock to vote against the deal—which prices the company at $90 per share, while it was trading at more than $93 in midday trading today—while Washington Group continues to push for the deal.

Under the terms of the settlement, Washington Group has agreed to provide shareholder with supplemental disclosures.

Schultze holds a roughly 3% stake in Washington Group.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of