CSC Board Sued Over Takeover Bid
Computer Associates International Inc. said a Computer Sciences Corp. shareholder sued CSC’s board, asking it to consider CA’s $9-billion acquisition bid. Computer Associates, also named as a defendant in the suit, made public its $108-a-share bid to buy CSC after talks broke down. CSC has said no negotiations with CA occurred and denied any key agreements were reached. The complaint, filed in Clark County, Nevada, District Court by Frances Bornstein on behalf of other CSC shareholders, said the holders want a special committee of the CSC board to be appointed “to consider the CA offer and negotiate with CA on behalf of the CSC shareholders.†The suit alleges that “CSC and its board’s interests are in conflict with the interests of CSC’s shareholders.†El Segundo-based CSC spokesman Bob Pickard said the company hasn’t been notified about the lawsuit. He declined to comment further. Islandia, N.Y.-based Computer Associates shares fell $1.25 to $49.50, while CSC shares rose 75 cents to $104.63 on the New York Stock Exchange.
