Drexel Burnham Lambert Inc. a central component in Wall Street's insider trading investigation, is denying allegations it attempted to extort Staley Continental Inc. into a Drexel-led buyout of the food company. Staley a food company based in Rolling Meadows, is suing the investment banking firm for $220 million in U.S. District Court, alleging violations of federal securities and racketeering statutes. pennystocks
Drexel spokesman Steven Anreder said Friday in a telephone interview he had not seen a copy of the lawsuit and did not know whether his company's lawyers had either. But he said the allegations as reported in newspapers were totally without merit.”Staley Continental does not lightly engage in litigation," company spokesman David Satterfield said Friday. Staley alleged Drexel attempted last November to pressure Stale management into supporting a leveraged buyout by undermining the company's attempts to raise money through a common stock offering. In a leveraged buyout, financing used to buy a target company is repaid with the company's cash flow or sales of its assets. Staley contended that when it proceeded in November with a stock offering that was opposed by Drexel the investment firm threatened to trade its Staley stock in a way to frustrate the offering -and then carried out the threa. pennystocks
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Drexel spokesman Steven Anreder said Friday in a telephone interview he had not seen a copy of the lawsuit and did not know whether his company's lawyers had either. But he said the allegations as reported in newspapers were totally without merit.”Staley Continental does not lightly engage in litigation," company spokesman David Satterfield said Friday. Staley alleged Drexel attempted last November to pressure Stale management into supporting a leveraged buyout by undermining the company's attempts to raise money through a common stock offering. In a leveraged buyout, financing used to buy a target company is repaid with the company's cash flow or sales of its assets. Staley contended that when it proceeded in November with a stock offering that was opposed by Drexel the investment firm threatened to trade its Staley stock in a way to frustrate the offering -and then carried out the threa. pennystocks
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