French financial IT firm Linedata Services is claiming victory in the battle to take over Canadian investment technology house Financial Models Company after an Ontario court ruled in favour of its offer.
The court found that BoNY Capital and William Waters, who between them own 42% of FMC stock, were bound to tender their shares to Linedata under a lock-up agreement.
An alternative bid for the shares by FMC CEO and president Stamos Katotakis under a pre-existing shareholder's agreement was deemed not to be in accordance with securities law and therefore not contractually binding.
The FMC board of directors has recommended that shareholders tender into the Linedata bid, which values the company at C$166 million.
The court ruling is subject to an appeal by Katotakis.
Shares in FMC closed up 15 Canadian cents at C$13.15, a new 52-week high.