Gilat Satellite to fight lawsuit resulting from 2008 failed merger

By Lisa Kerner

Charlotte, N.C., Nov. 12 - Gilat Satellite Networks Ltd. believes the lawsuit filed by eight individuals and Israeli companies in an Israeli district court against Gilat and shareholder York Capital Management is "outlandish" and without merit, according to a Gilat news release.

The plaintiffs claim damages of $12.4 million based on the amounts the plaintiffs would have been paid had a March 31, 2008 merger agreement with a consortium of buyers closed, said Gilat.

A similar lawsuit was filed by the same group of Israeli shareholders in October 2008 and withdrawn in July at the court's recommendation, the release said.

Gilat said in August 2008 it notified the consortium of buyers that it was terminating the merger agreement based on the buyer's intentional breach of the agreement and failure to close the deal.

The company said its seeking payment of the $47.4 million termination fee in a lawsuit against the purchasers.

Based in Petah Tikva, Israel, Gilat provides internet protocol-based digital satellite communication and networking products and services. The company produces very small aperture terminals and related network equipment.

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