Koll Management Services to Settle Suit
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NEWPORT BEACH — Koll Management Services Inc. has agreed to settle shareholder litigation stemming from a possible acquisition.
In June, the Newport Beach-based property management company said that Freeman Spogli & Co., a Los Angeles investment firm, had offered to buy a nearly 50% stake in the company for about $24 million. As part of the original proposal, company Chairman Donald Koll said he would sell about 14% of the indirect stake he owns in the company and public investors would sell their 36% stake for about $17 million, or $16 a share.
On Thursday, an understanding was reached between Koll management and those filing the lawsuit that would give plaintiffs an additional 50 cents for each share of company stock they own, boosting the purchase price to $16.50 a share. The class members include all holders of KMS common stock between June 2, 1994, and the date that the acquisition is consummated.
Shareholders are to vote on the merger agreement on Nov. 23.
In Nasdaq trading Thursday, the company’s stock was down 12.5 cents, closing at $15.50 a share.
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