In the latest legal barrage in the Woolworth-Brascan-edper takeover triangle, Edper Equities Ltd. filed a suit in U.S. District Court in New York to halt Brascan Ltd. from proceeding with a $1.125 billion bid for F.W. Woolworth Co., the huge five-and-dime chain.
Edper is seeking an injunction on the basis that Brascan and its directors "are in violation of (U.S.) federal securities laws."
Edper also alleges that the decision to proceed with the bid "by the officers and directors of Brascan was made in bad faith in order to protect their personal positions" and wages.
At Brascan spokesman called the allegations "patently ridiculous." The suit also seeks unspecified damages for "misleading statements by Brascan management."
Last week, the New York state attorney general considered whether Brascan should be permitted to proceed with its plans to take over Woolworth. The hearing concluded Friday but an investigation by state authorities is continuing.
Both Woolworth and Edper violently oppose Brascan's bid. Edper President Patrick Keenan told the hearing Edper would try to sell Woolworth outright or in pieces, if necessary, if Brascan gains control of the store chain before Edper gains control of Brascan.
The New York court will consider on Wednesday what to do about restrictions placed on Edper's attempts to block the bid.