Bloomberg reported that Titanium Metals Corp has reached a settlement with an investor group that claimed the company's USD 2.9 billion acquisition by Portland's Precision Castparts Corp.was an attempt to avoid disclosing owner Harold Simmons'deals with the titanium company.
Bloomberg reports that Dallas Texas based Timet which makes titanium used in aircraft parts agreed to make more information about the acquisition by Precision Castparts available to shareholders.
Precision a maker of critical metal components used in aerospace and energy markets announced the Timet deal in early November saying the acquisition of the world's largest independent titanium manufacturer was the a key missing piece of its business.
But a Timet shareholder Louisiana based Sunshine Wire and Cable Defined Pension Benefit Plan filed a lawsuit claiming the acquisition was an attempt by Simmons a billionaire and Timet's controlling shareholder to avoid obligations of an earlier legal settlement.
The Sunshine Wire pension plan had earlier sued claiming Timet executives for engaging in what Bloomberg described as a half dozen self dealing transactions including below market rate loans made by the company to entities controlled by Simmons.The company agreed to settle shareholder claims against Simmons and its board saying it would increase oversight of related party transactions.
In a court filing last week Titanium officials say they agreed to resolve the latest lawsuit to"eliminate the burden risk and expense of further litigation
Source-Bloomberg
