The joint venture, PSCO Acquisition Corp., was formed to absorb Konover and take it private. Plans for the merger, announced in late June, drew an immediate and angry response from preferred stockholders, who charged that either the company's financial statements were inaccurate or that Prometheus, which is an affiliate of New York-based Lazard Freres Real Estate Investors, was getting the company at a "bargain price."
Prometheus purchased a 66%-share of Konover common stock in February 1999, which seemed to virtually guarantee acceptance of the merger plan.
In light of this, the preferred stockholders hired Greenwich, CT-based Mercury Partners as a financial advisor and sued Konover, which delayed the pending $23-million buyout.
Asked how the preferred stockholders would respond to this latest attempt to gain approval of the merger plan, David R. Jarvis, Mercury's senior managing director, tells GlobeSt.com, "I can't comment at this moment. Call back in a week or two."
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