(Adds own sources, details)
June 29 Gardner Denver has agreed to pay $29
million to its former shareholders to settle allegations the
industrial pumps producer was undervalued in its $3.7 billion
sale last year to private equity firm KKR & Co,
according to court documents.
The settlement, reached after two days of mediation in
Chicago earlier this month, was filed on Friday in a Delaware
court and must still be approved by a judge.
Shareholders sued Gardner Denver, its board and KKR, saying
the sale price was too low.
The shareholders accused KKR of tainting the sale process by
hiring Gardner Denver's former chief executive officer, Barry
Pennypacker, shortly after he resigned in July 2012. KKR, the
shareholders alleged, "improperly obtained confidential
information from Pennypacker" that informed KKR's bid.
Lawsuits typically follow merger and acquisitions, but most
of them are dismissed or settled for no additional money.
A spokeswoman for KKR said the firm does not comment on
Randall Baron, an attorney for the plaintiffs, said in an
email the settlement was "a very good result for shareholders in
what would have been a very challenging case."
(Reporting by Richard Leong and Andrew Longstreth; Editing by
Greg Mahlich and Paul Simao)