Takeover Opposed By Hedge Funds Falters

Oct 30 2007 | 2:43pm ET

Engineering and construction concern Washington Group International has postponed a vote on its proposed takeover by URS Corp. to build support for the hedge fund-opposed bid.

URS’ $2.6 billion offer for Washington Group has been slammed by activist hedge funds for undervaluing the target. Greenlight Capital, which owns 10% of Boise, Idaho-based Washington, has said it will vote against the deal, while Purchase, N.Y.-based Shultze Asset Management had sued to preempt the deal. Shultze, which owns 3% of Washington, settled its lawsuit earlier this month, after Washington agreed to provide supplemental disclosures to shareholders.

Influential proxy adviser Institutional Shareholder Services has also inveighed against the bid, urging Washington shareholders to vote no.

Yesterday, Washington admitted that it did not receive enough support, and postponed the vote, set for today, until Nov. 9.

RELATED STORIES

Hedge Fund Settle Washington Group Lawsuit


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

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

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of