(Corrects paragraph 7 to say that shareholder vote was
delayed, not forced)
* Among largest cash settlements in Delaware court
* Deal pending approval by court vice chancellor
* "Great result for stockholders"-- plaintiffs' lawyer
(Adds detail after paragraph three)
Oct 6 Del Monte Corp and Barclays Capital have
agreed to pay $89.4 million to Del Monte shareholders in one of
the largest cash settlements on record in Delaware Chancery
Court, lawyers for the plaintiffs said on Thursday.
The settlement was reached with shareholders who challenged
the 2010 private equity buyout of the company by a group of
investors led by Kohlberg Kravis Roberts & Co LP (KKR.N).
Del Monte will contribute $65.7 million and Barclays
Capital, a unit of Barclays Plc (BARC.L), will pay $23.7
million, lawyers for the plaintiffs said in a statement.
Del Monte had no comment on the settlement. Barclays did
not immediately return calls seeking comment.
In the lawsuit, investors alleged that Barclays Capital,
which was advising Del Monte on a sale last year, had a
conflict of interests because it also arranged financing for
the group of buyers that included KKR.
The settlement, subject to approval by Vice Chancellor J.
Travis Laster, would resolve all litigation over the sale of
Del Monte to the buyout group, the plaintiffs said.
In February, Laster delayed a shareholder vote on the deal
after accusing Barclays of "secretly and selfishly
manipulat(ing) the sale process to engineer a transaction" to
allow Barclays to collect large financing fees.
"This case has sharply reined in certain practices within
the investment banking community, where many financial advisers
regularly gamed the M&A process through double-dip
engagements," said Randall Baron, a partner with the law firm
Robbins Geller and an attorney for the plaintiffs.
"This [is) a great result for stockholders-- not only those
holding shares in Del Monte, but all public equity holders of
companies involved in M&A transactions," said Stuart Grant, a
partner at Grant & Eisenhofer who is also an attorney for the
The case is In Re Del Monte Foods Company Shareholders
Litigation, Consol. C.A. No. 6027-VCL, Delaware Chancery
(Reporting by Moira Herbst; Editing by Tim Dobbyn and Gerald