IBJNews

American Commercial Lines sued over $777M buyout bid

Back to TopCommentsE-mailPrintBookmark and Share

American Commercial Lines Inc. is being sued by an investor who claims a $777 million buyout of the barge and towboat maker doesn’t provide enough for his shares.

Officials of Jeffersonville-based American Commercial and private-equity firm Platinum Equity LLC structured the $33-a-share offer in a way that unfairly bars other bids for the shipping company, American Commercial shareholder Leonard Becker said in his Delaware Chancery Court lawsuit.

Investors “will not receive adequate or fair value for their” shares as part of Beverly Hills, California-based Platinum’s buyout, Becker said in the Oct. 22 complaint filed in Wilmington, Del.

American Commercial’s barges carry goods along the U.S.’s inland waterways, according to the company’s website. Its boats deliver coal to power plants along the Ohio River and also operate along the Mississippi River.

Christopher Black, an American Commercial spokesman, didn’t immediately return a phone call for comment on Becker’s suit. Dan Whelan, Platinum’s spokesman, declined to comment.

Companies controlled by billionaire real-estate developer Sam Zell, owner of the Chicago Tribune newspaper, control about 25 percent of the company, according to regulatory filings.

Zell has agreed to take $31.25 for each of his American Commercial shares if the buyout is completed by the end of the year, according to court papers. If the deal is pushed into 2011, he’ll get the same $33 a share as other investors, court papers said.

Becker contends American Commercial’s directors and Platinum’s executives have included provisions in the buyout bid designed to fend off other suitors, including a $14 million termination fee.

“A rival bidder is not likely to emerge with the cards stacked so much in favor of Platinum,” Becker said in the suit.

Platinum, run by Flint, Mich., native Tom Gores, has made more than 100 acquisitions since Gores founded it in 1995, company officials said in a September press release. The fund has more than $27.5 billion in aggregate revenue, officials said in the release.

Platinum, which was also named as a defendant in Becker’s suit, is best known as the owner of the San Diego Union-Tribune newspaper.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT