Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) today signed settlement agreements with Mivtach Shamir Holdings Ltd. (TASE:MISH), LR Group Ltd., Gores Capital Partners II LP, and DGB Investments Inc. in the litigation over the termination of the March 2008 acquisition agreement. Gilat will receive $20 million under the settlement.
Over half of the settlement will be paid by October 1, 2010 with the remainder to be paid in three annual installments through October 2013.
Gilat said that the settlement was reached after it sued the buyers in the Tel Aviv District Court in November 2008. Gilat demanded $47 million for the cancellation fee, pursuant to the merger agreement, which had been approved in July 2008 by Gilat's general shareholders meeting.
The settlement will terminate all court proceedings filed by Gilat against each of the defendants.
Gilat's share closed at $5.65 on Nasdaq yesterday, giving a market cap of $227 million. The share price fell 1.5% in morning trading on the TASE today to NIS 21.20.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2010
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