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O.C. BUSINESS PLUS | ORANGE COUNTY BRIEFLY

Judge OKs Pimco Sale Settlement

May 04, 2000|Bloomberg News

A judge in Delaware has approved Pimco Advisors Holdings LP's plan to settle lawsuits by limited-partnership owners, who sued over Allianz AG's plan to buy the Newport Beach firm for about $3.3 billion.

Pimco, the world's biggest bond fund manager, agreed last October to be bought by Munich-based Allianz for $38.75 a share in cash, about a 12% premium at the time. Unit holders filed six suits in Delaware Chancery Court seeking more money.

After discussions among lawyers, the suits were dropped in exchange for more information about the buyout process and a reduction in the termination fee to $120 million from $180 million if the purchase isn't completed, according to court papers.

"The price to be paid is a full and fair price [and] terms of the settlement are fair, reasonable and adequate," Judge Stephen Lamb said Wednesday in approving the pact. He also agreed to award plaintiffs' lawyers $1.5 million in fees and expenses.

The acquisition is expected to be completed Friday.

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