Article: Court Dismisses Antitrust Challenge To Joint Bid In Corporate Acquisition.(Pennsylvania Avenue Funds v Borey Inc)

Controversial district court decision could affect joint bidding by private equity funds.

On February 21, 2008, the U.S. District Court for the Western District of Washington dismissed antitrust claims against two private equity funds that allegedly conspired in their joint bid for corporate control of a publicly traded company. In Pennsylvania Avenue Funds v. Borey, et al., Case No. C06-1737RAJ (W.D. Was. Feb. 21, 2008), the plaintiff, an allegedly aggrieved shareholder of the target, alleged that at the end of a bidding process, the two previously competing bidders conspired to withdraw one of the bids and then substantially lower the only remaining bid. In its ...

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