Ecolab Hit With $15M Suit Over Chemical Co. Merger

Law360, Houston (November 5, 2013, 8:52 PM EST) -- Ecolab Inc. was sued in Texas state court Tuesday by a group of former Permian Mud Service Inc. shareholders who say the sanitation and pest control company ignored income allocation terms of a $2.2 billion merger agreement, increasing their share of tax liability by $15 million.

The shareholders say Ecolab is improperly demanding $15 million from an account dedicated to post-merger costs to cover a tax hit that was created as a result of its failure to distribute Permian’s income among its domestic and foreign subsidiaries....
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