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AlliedSignal Appeal in AMP Bid Fails

November 03, 1998|Reuters

In the latest in a series of legal setbacks for AlliedSignal Inc.'s $10-billion hostile bid for AMP Inc., an appellate court refused to overturn a ruling that prevents AlliedSignal from holding a proxy battle for the leading maker of electrical connection devices. The U.S. 3rd Circuit Court of Appeals denied AlliedSignal's request for emergency relief from an injunction barring the proxy battle. Last month, an injunction was handed down in U.S. District Court in Philadelphia that temporarily prevents the Morris Township, N.J.-based manufacturer from proceeding with a proxy fight for control of AMP. AlliedSignal expected to solicit written consent from AMP shareholders last month for a plan that would expand the Harrisburg, Pa.-based company's 11-member board to 28 by adding 17 AlliedSignal officers and directors. The new board majority would then be in a position to merge the two companies. But AMP, which has been struggling to remain independent since the hostile $44.50-per-share all-cash offer surfaced in August, won a temporary injunction to block the consent solicitation. Representatives for both companies were not immediately available to comment on the ruling. In New York Stock Exchange trading, AMP shares fell 56 cents to close at $40.50, and AlliedSignal shares rose $1 to close at $39.94.

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