Crystal Systems Solutions Ltd. announced that it has learned that a former shareholder of Liraz Systems Ltd. has filed a lawsuit against Crystal alleging that the share price paid to Liraz's shareholders in the tender offer and subsequent mandatory purchase was lower than the fair price of Liraz shares. Crystal has not yet been served with the lawsuit.
At the time, Liraz Systems was traded on the Tel Aviv Stock Exchange (TASE). Crystal published a tender offer to purchase all Liraz shares not already owned by Crystal for 10.80 new Israeli shekels per share (approximately $2.29).
Crystal offered to purchase 675,497 shares of Liraz in the tender offer, which expired on March 27, 2003. Of this amount, 393,109 shares were properly tendered; pursuant to Israeli law, Crystal then purchased the remaining 282,383 unsubscribed shares by a mandatory acquisition.
Prior to the tender offer, Crystal owned 90 percent of Liraz, and as a result of this tender, and the subsequent mandatory acquisition, Liraz is now wholly owned by Crystal, and its shares were de-listed from the TASE.
Under Israeli law, the court's approval is required for the plaintiff to represent all of the shareholders of Liraz who sold their shareholdings to Crystal pursuant to the tender offer and the mandatory acquisition, and the plaintiff has applied for that approval in the lawsuit. Crystal believes that the claims are without merit and plans to vigorously defend this lawsuit.
Crystal Systems Solutions Ltd. and its wholly owned subsidiary BluePhoenix Solutions develop and market cost effective Enterprise Information Technology (IT) Modernization products and solutions that enable clients to extend the ROI of their existing systems through Understanding, Migration, Transformation and Development.
The companies have offices throughout the world including the United States, United Kingdom, Denmark, Germany, Italy, Netherlands, Israel and Cyprus. Crystal is a member of the Formula Group, an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products, and providing computer-based solutions. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
