Allen sued over buyback
Charter chairman wants to buy rest of company
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Allen, the co-founder of Microsoft Corp., is considering a buyout of the 44% of Charter's common stock he doesn't already own, according to a U.S. Securities and Exchange Commission filing.
Lawyers for shareowner Eleanor Leonard said Allen, who holds 93% of the voting power and controls other directors, wants to buy the stock for the lowest possible price, according to a lawsuit made public Tuesday in Delaware Chancery Court. The company and its board of directors were also named as defendants.
In a severely depressed market, "Allen will be able to acquire the shares of Charter that he does not already own, as well as Charter's valuable assets, for his own benefit, at the expense of public shareholders,'' according to the suit.
Duty to shareholders
Leonard says Allen and other board members have a duty to get the best price for shareholders. She wants a judge to prohibit a share buyback by Allen and to award her damages and legal fees.
Charter spokesman David Andersen said the company hadn't seen the suit and couldn't immediately comment.
Class A shares of St. Louis-based Charter, which reported $3.95 billion in fiscal 2001 sales and a $1.17 billion loss, fell 9¢ to $2.66 in Nasdaq Stock Market trading as of 4 p.m. in New York. The shares rose to a 52-week high of $22 a year ago.
Analysts have said the stock is worth more than its current price, perhaps as much as $12 per share, considering growth prospects.
