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VALLEY AND VENTURA COUNTY | REGIONAL ROUNDUP

Special Devices Sale Prompts Shareholder Suit

July 07, 1998

Newhall-based Special Devices has agreed to be acquired by a private equity fund, a unit of J.F. Lehman & Co., in which the affiliate will get nearly all outstanding shares of Special Devices common stock for $37 per share.

Some shareholders contend that the price, which is slightly higher than the $35-$36 range where the stock has been trading, undervalues the company and they have filed suit against the company, which makes devices that trigger inflation in automobile air bags.

John Cuthbert, a spokesman for the company, said, "We don't believe the lawsuit has any merit," and noted that the deal, valued at about $296 million, must be approved by shareholders.

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