Monday, July 7, 2008

C'mon, Bill Gates had extra money; he could have bought PFF for $10 a share

This July 3 Claremont Insider post linked to this June 26 Claremont Insider post, which itself linked to this June 24 Riverside Press-Enterprise article.

A shareholder of PFF Bancorp has filed a class-action lawsuit against the Rancho Cucamonga-based firm and the Illinois-headquartered company that recently agreed to acquire it, alleging company officials breached their responsibilities by selling PFF at too low a price....

The lawsuit was filed June 18 in Los Angeles Superior Court by attorneys for plaintiff Menachem Maiman....

The suit asks the court to stop the merger, or rescind it if a court judgment is not rendered until after the merger is completed.

The theory, of course, if that PFF could have negotiated a better deal than the one they struck with FBOP Corporation.

From a layman's perspective, I'd have to say that I don't see a real persuasive argument on the surface here. PFF couldn't exactly hold out for a better deal.

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