SOURCE: Kendall Law Group

Kendall Law Group

October 01, 2009 16:33 ET

Affiliated Computer Services Sued Over Takeover Agreement With Xerox, Announces Former Federal Judge at Kendall Law Group

DALLAS, TX--(Marketwire - October 1, 2009) - Kendall Law Group, led by a former Dallas Federal Judge, today announced that a lawsuit was filed over the recent buyout announcement of ACS (NYSE: ACS).

The Dallas state court petition alleges that the process employed by ACS and its board of directors was unfair. For example, the agreement provides that ACS Chairman Darwin Deason will continue to reap his $3.5 million in compensation, plus benefits, until May of 2014. In return, Deason agreed to vote all of his shares in favor of the takeover by Xerox. Deason's shares comprise a 43.6% ownership of the company. Additionally, the ACS Board agreed to a no-solicitation provision and a termination fee of $194 million, which is designed to discourage any potential bidders.

According to the agreement between Xerox and ACS, ACS shareholders will receive only $18.60 per share in cash plus 4.935 Xerox shares per ACS share they currently own. Therefore, shareholder recovery would be valued at approximately $63.11 per share, and the total transaction value is approximately $6.4 billion. Based on the six-month average of the closing prices of Xerox shares, ACS shares would be valued at $53.60.

For information about your rights as an ACS shareholder, contact attorney Hamilton Lindley at 877-744-3728 or by email at hlindley@kendalllawgroup.com. Although every case is different, Kendall Law Group has successfully litigated on behalf of ACS shareholders in the past. The firm also has significant experience representing shareholders in mergers and acquisitions, at no charge to the investor, from Kendall Law Group's headquarters in Dallas, Texas.

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