Ivax Corp. said last week that it has received notice fromTrinity Capital Enterprise Corp. that a shareholder lawsuit hasbeen filed against Trinity regarding the proposed merger oftwo Ivax subsidiaries with Trinity.
The suit, filed last Thursday in Southern District Court of NewYork, alleges that Trinity (NASDAQ:TICO) and certain of itsofficers and directors will harm Trinity stockholders by payingtoo high a price to Ivax in the proposed merger.
Trinity and Ivax (AMEX:IVX) announced last month that theyplan to merge Diamedix Corp. and GDU Trading Co. with Trinityin a stock swap worth about $245 million. Trinity is a shellcompany formed in 1991 to seek a merger with a businesswith significant growth potential. The Ivax subsidiariesdevelop, manufacture and market medical diagnostic test kits,reagents and instruments.
Ivax of Miami is continuing to work toward a definitive mergeragreement, said Richard Pfenniger Jr., senior vice president oflegal affairs at Ivax. New York-based Trinity plans to file aresponse to the suit this week, Pfenniger said.
Ivax shares closed down 38 cents Friday at $33.75. -- KB
(c) 1997 American Health Consultants. All rights reserved.