Mivtach Shamir to sue Gilat after buyout deal fails
JERUSALEM, Aug 31 (Reuters) - Israel's Mivtach Shamir Holdings (MISH.TA) said on Sunday it plans to sue Gilat Satellite Networks (GILT.O) after a deal to buy Gilat collapsed.
Israel-based Gilat on Friday terminated a $475 million takeover deal struck with a consortium that included Mivtach Shamir, accusing the group of intentionally breaching the deal's terms.
Gilat GILt.TA said it would sue the group to receive a termination fee of $47.3 million.
But the consortium, which also includes private equity firm Gores Group LLC, denied Gilat's allegations and charged Gilat of breach of contract.
"It is the intention of the company, acting with other companies in the group, to protect its rights and as a result, we are bringing a lawsuit against Gilat for breach of contract," Mivtach Shamir said in a statement to the Tel Aviv Stock Exchange.
The deal to buy Gilat was initially struck in March but fell apart when, Gilat said, the buyers tried to change the terms and were unwilling to proceed at the price agreed of $11.40 a share.
Gilat's Nasdaq-listed shares slid 5.4 percent on Friday to $7.55. Its Tel Aviv shares were 3.7 percent lower in afternoon trade on Sunday. (Reporting by Steven Scheer; Editing by David Holmes)
