IBP and Tyson Foods find themselves having to argue two different cases – one in Delaware and one in Arkansas – on the same day, according to a news report on the Meatingplace.com.
A Delaware Court will hear IBP's case on May 14, concerning its attempt to get Tyson to complete it's previously proposed $4.7-billion acquisition of the beef and pork packer. This comes after a Delaware judge denied Tyson's petition to stay the Delaware action, which would have allowed the issue to be addressed in Arkansas.
Also on May 14, an Arkansas judge will be hearing Tyson's lawsuit against IBP for fraud and breach of contract.
“We are in the unusual position of having the Arkansas fraud and Delaware breach of contract trials scheduled to begin on the same day,” points out Lee Baledge, general counsel for Tyson.
In the Arkansas case, Tyson is pursuing a judgment that would terminate the acquisition agreement, return the $66.5 million loaned to IBP in pursuit of the sale, reimburse costs Tyson incurred, and damages for IBP's alleged fraud in the proposed $4.7-billion transaction.
Tyson terminated its proposed acquisition of IBP on March 29, and filed a suit against IBP. The next day, IBP counter sued, claiming Tyson had breached the purchase agreement in a previously filed shareholder suit in Delaware that IBP had moved to dismiss. On April 2, IBP amended it's cross-complaint against Tyson saying an early confidentiality agreement between the parties required that all disputes be heard in Delaware.