K2 announces in-principle settlement of litigation

01 Aug '07

1 min read

K2 Inc announced that it and the City of Roseville Employees' Retirement System, on behalf of itself and all others similarly situated, agreed to a settlement in principle of the pending litigation in the Superior Court of the State of California brought by the City of Roseville Employees' Retirement System relating to the pending acquisition of K2 by Jarden Corporation ("Jarden").

The material terms of the settlement include K2's agreement to make certain disclosures regarding the transaction, which disclosures K2 has already made in its proxy materials sent to shareholders and reports previously filed with the Securities and Exchange Commission.

The settlement also provides that K2 and Jarden will amend the merger agreement with respect to the transaction as soon as reasonably possible in order to reduce from $27.5 million to $24 million the termination fee payable by K2 to Jarden under certain circumstances in the event that the merger agreement is terminated. The settlement includes full releases of all the defendants.

The settlement is subject to preliminary and final approval of the California Superior Court where the case is pending. A companion case brought by Steamfitters Local 449 Pension & Retirement Security Funds will be dismissed.

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