CSC Suit Alleges Bribery, Extortion in Merger Try
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In a multimillion-dollar lawsuit filed Monday in Los Angeles County Superior Court, Computer Sciences Corp. said Computer Associates International tried to win support for a merger through bribery, extortion and other unlawful means.
The 22-page suit says Computer Associates Chairman and Chief Executive Charles Wang offered CSC Chairman, President and Chief Executive Van Honeycutt a $102.5-million package to persuade him to sell the company for $100 a share. In a subsequent meeting, Computer Associates executives “threatened to wrongfully harm CSC if it refused to agree to a transaction” at $98 a share, according to the suit.
Two weeks later, Computer Associates launched a $108-a-share hostile bid for the El Segundo-based computer services and consulting firm.
A spokesman for Islandia, N.Y.-based Computer Associates said the company could not comment on the suit because officials at the software development firm had not seen it. Wang and Computer Associates President Sanjay Kumar are also named as defendants.
The lawsuit asks for at least $50 million in damages and that Computer Associates be forced to abandon its takeover attempt.
On the New York Stock Exchange Monday, Computer Sciences’ stock fell $1.38 to close at $102.63, while Computer Associates shares rose 13 cents to end the day at $47.25.
