Reynolds American (RAI) and Lorillard reached agreements with litigants that remove impediments to shareholder approval of their proposed merger at extraordinary meetings scheduled for late January, the Triad Business Journal reported.
RAI reached a memorandum of understanding with a trust that had filed a challenge to the takeover. The memorandum states no action will be taken to “unwind or rescind” the shareholder vote at a 28 Jan meeting to approve the deal, the publication said on its website. Lorillard, whose shareholders also will meet 28 Jan, entered into an agreement to settle a suit filed by disgruntled investors in the Delaware Court of Chancery, the Journal said.
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