Court orders delay in Calix/Occam Networks merger approval

Jan. 26, 2011
JANUARY 26, 2011 By Stephen Hardy -- Occam Networks, Inc. (Nasdaq:OCNW) says that it will convene the special meeting of shareholders scheduled for tomorrow that was intended to approve its merger with Calix -- and then will immediately adjourn it as a result of a court order.

JANUARY 26, 2011 By Stephen Hardy -- Occam Networks, Inc. (Nasdaq:OCNW) says that it will convene the special meeting of shareholders scheduled for tomorrow that was intended to approve its merger with Calix -- and then will immediately adjourn it as a result of a court order.

Calix and Occam Networks announced the merger agreement last September (see “Calix and Occam all about scale”). However, the Delaware Court of Chancery has ordered that a vote of shareholders be delayed until February 22, 2011. It also commanded that Occam Networks provide additional information to its shareholders as well as a deposition from Occam’s financial advisor.

Three of Occam’s major shareholders immediately lobbied against the proposed merger after the two parties announced the deal (see “Occam shareholders protest Calix deal”). They filed a class action suit before the Delaware Court of Chancery against Occam’s board of directors on October 6, 2010.

Occam says it will file the additional information with the Securities and Exchange Commission.

The company adds that a preliminary count of shareholders as of the close of business on January 25, 2011 indicated that holders of approximately 63% of Occam’s outstanding shares intended to vote in favor of the merger.

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