Shareholders Peeved Over $288M Capital Gold Deal

Law360, New York (October 11, 2010, 6:27 PM EDT) -- A shareholder of Capital Gold Corp. has launched a putative class action seeking to block Gammon Gold Inc.’s $288 million bid for the gold production and exploration company, calling the offer “unfair and undervalued.”

The lawsuit, filed Friday in Delaware Chancery Court by plaintiff Helmut Boehm, claims that Capital Gold’s board of directors has refused to negotiate in good faith with competing bidders.

According to the lawsuit, Capital Gold President Colin Sutherland persuaded the company’s board to accept Gammon Gold’s offer. Sutherland, the complaint says, held...
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