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PFIZER v WARNER-LAMBERT Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 17,524, CourtName: THIS COURT RULES ON THE MERITS OF PFIZER S AND WARNER S CONTRACT CLAIMS ARISING OUT OF, Plaintiff: PFIZER, State: DE Delaware, UniqueCaseRef: DE>CC>00017524, CourtCode: CC, Paragraph, Pfizer, Merger, Complaint, Ahp, Warner, Merger Agreement, Allegation, Deny, Privilege, Motion, Insofar, Proposals, Discovery, Response, Materials, Warner-lambert, Denies, Discovery Opinion, Shareholders, Stockholders, Transaction, Vink, Warner Directors, Drug Litigation, Admit, Information/no, Protective Order, Diet Drug Litigation, Diet Drug, Purports, Respectfully Refer, Thereof, Warner-ahp Merger, Provision, Documents Relating, Diet Drug Information, Warner Board, Premium , ContentID: 120239701

Case Documents
1 1999-12-22 LETTER OPINION
[ see first page and extracted highlights below  ] ItemID: 100231
5 pages
PDF
2 1999-12-21 PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION TO ENFORCE THE DISCOVERY OPINION
[ see first page and extracted highlights below  ] ItemID: 102686
20 pages
PDF
3 1999-12-16 DEFENDANT AMERICAN HOME PRODUCTS REPLY MEMORANDUM IN SUPPORT OF MOTION FOR PROTECTIVE ORDER AND IN OPPOSTION TO CROSS-MOTION OF PLAINTIFF
[ see first page and extracted highlights below  ] ItemID: 102688
28 pages
PDF
4 1999-12-14 PLAINTIFFS ANSWERING BRIEF IN OPPOSITION TO DEFENDANTS MOTION FOR PROTECTIVE ORDER AND OPENING BRIEF IN SUPPORT OF PLAINTIFFS MOTION TO ENFORCE THE DISCOVER OPINION
[ see first page and extracted highlights below  ] ItemID: 102689
43 pages
PDF
5 1999-12-14 PLAINTIFFS ANSWERING BRIEF IN OPPOSITION TO MOTION FOR PROTECTIVE ORDER AND OPENING BRIEF IN SUPPORT OF MOTION TO ENFORCE THE DISCOVERY OPINION
[ see first page and extracted highlights below  ] ItemID: 102687
43 pages
PDF
6 1999-12-08 LETTER OPINION
[ see first page and extracted highlights below  ] ItemID: 100232
8 pages
PDF
7 1999-12-03 ANSWER TO AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101667
33 pages
PDF
8 1999-12-03 AMERICAN HOME PRODUCTS ANSWER TO AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101666
32 pages
PDF
9 1999-11-18 LETTER TO CHANCELLOR CHANDLER
[ see first page and extracted highlights below  ] ItemID: 102691
14 pages
PDF
10 1999-11-16 MOTION FOR EXPEDITED PROCEEDINGS
[ see first page and extracted highlights below  ] ItemID: 102690
16 pages
PDF
11 1999-11-15 AMENDED COMLAINT
[ see first page and extracted highlights below  ] ItemID: 101668
51 pages
PDF
12 1999-11-04 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101669
5 pages
PDF
Total Documents: 12 documents , 298 pages
Price: $ 74.95


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1 . LETTER OPINION

EXTRACTED KEY WORDS
CONSENT SOLICITATION
COURT
LIPITOR
AGREEMENTS
WARNER
SCHEDULE
MERGER
INJUNCTION
CONTRACT CLAIMS
LAWSUITS
RESOLVE
BREACH
STANDSTILL PROVISION
FIDUCIARY DUTY
AHP
RULING
DEAL PROTECTIONS
INSISTENCE
DISCOVERY
BUSINESS
CHANCERY
MERITS
PARTIES
MANNER
PROMPT
LITIGATION
REASON
LAUNCHING
DESPITE
                                                    C OURT  OF   C HANCERY
                                                             OF THE
                                                     STATE  OF   D ELAWARE


W I L L I A M   B   C H A N D L E R   Ill                                                        T
           CHANCELLOR                                                                              
                                                                                              G E O
                                                     December 22, 1999


              R. Franklin Balotti                                      Joseph A. Rosenthal
              Richards Layton & Finger                                 Rosenthal Monhait Gross &
              P.O. Box 551                                             P. 0. Box 1070
              Wilmington, DE 19899                                     Wilmington, DE 19899
              (fax) 6586548                                            (fax) 658-7567

              Michael D. Goldman                                       Pamela S. Tiltellis
              Potter Anderson & Corroon LLP                            Chimicles & Tiltellis, LLP
             P.O. Box 951                                              P. 0. Box 1035
              Wilmington, DE 19899                                     Wilmington, DE 19899
              (fax) 658-l 192                                          (fax) 656-9053

              A. Gilchrist Sparks, III                                 James C. Strum
              Morris Nichols Arsht & Tunnel1                           Chimicles & Tikellis, LLP
              P.O. Box 1347                                            P. 0. Box 1035
              Wilmington, DE 19899- 1347                               Wilmington, DE 19899
              (fax) 658-3989                                           (fax) 656-9053




              Dear Counsel:

                            This is my decision on Warner-Lambert's application to schedule a
                                                                                                   
              injunction hearing on January 10, 2000. Warner's motion, filed on December 17,

              1999, seeks to enjoin PGzer's consent solicitation, and to maintain the status quo 

              this Court rules on the merits of Pfizer's and Warner's contract claims arising out of

              the Lipitor Agreements.



CA. No. 17524
December 22, 1999
Page 2
SNIPPETS:
  • This is my decision on Warner-Lambert's application to schedule a preliminary
  • 1999, seeks to enjoin PGzer's consent solicitation, and to maintain the status quo until
  • this Court rules on the merits of Pfizer's and Warner's contract claims arising out of
  • the Lipitor Agreements.
  • This Court has the inherent authority to control its own docket,
  • the scheduling of multiple lawsuits arising from the same set of operative facts.
  • I have concluded that the most efficient and orderly manner of addressing the
  • Pfizer's injunction action regarding the
  • Pfizer will obtain a prompt ruling on its claim that Warner's actions
  • have effectively released Pfizer from the contractual restrictions in the Lipitor
  • Warner will obtain a prompt decision on its contention that Pfizer has
  • breached the standstill provision, that `Warner is not in breach, and that Warner may
  • in a position to move forward on its fiduciary duty claims against Warner and AHP.
  • The Court has revisited its earlier scheduling decisions for good reason.
  • need to resolve whether the parties have: breached the standstill provision in the Lipitor
  • rather than following a hearing on deal protections in the Merger
  • arises from Pfizer's insistence on launching a consent solicitation on or
  • launching a consent solicitation knowing that the standstill provision in the Lipitor
  • Court to accelerate the timetable for adjudication of the Lipitor contract claims.
  • Pfizer has elected to run this consent solicitation despite its claim to the
  • or they may lead to the discovery of relevant evidence.
  • contain proprietary business valuation or d-iet drug litigation information.
  • oc: Register in Chancery

  • 2 . PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION TO ENFORCE THE DISCOVERY OPINION

    EXTRACTED KEY WORDS
    WARNER
    DISCOVERY OPINION
    DOCUMENTS RELATING
    COURT
    DIET DRUG
    DELAWARE
    ADVICE
    PFIZER
    DEFENDANT
    MOTION
    DIRECTORS
    PRIVILEGE
    POB
    MERGER
    ENFORCE
    LITIGATION
    MATERIALS
    WORK PRODUCT
    PRODUCTION
    WORK PRODUCT DOCTRINE
    AHP PARTIES
    ATTORNEY-CLIENT PRIVILEGE
    WARNER LETTER
    BOARD MEETING
    BOARD BOOKS
    DEPOSITION
    DAIRV MART
    MERGER AGREEMENT
    JOEL KATCOFF
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
    
    
     PFIZER INC
    
                          Plaintiff,
    
                V.                               ; C.A. No. 17524NC
    
     WARNER-LAMBERT COMPANY, et al.,             i FILED UNDER SEAL
                          Defendants.            ; REDACTED
                                                 ' VERSION
                       PLAINTIFF'S REPLY BRIEF IN SUPPORT OF PLAINTIFF'S
                         MOTION TO ENFORCE THE DISCOVERY OPINION
    
    
     OF COUNSEL:                                R. Franklin Balotti
                                                Jesse A. Finkelstein
     Jonathan M. Hoff                           Robert 3. Stearn, Jr.
     Cadwalader, Wickersham & Taft              J. Travis Laster
      100 Maiden Lane                           Richards, Layton & Finger
     New York, NY 10038                         One Rodney Square
     (212) 504-6000                             P.O. Box 551
                                                Wilmington, Delaware 19899
     David Klingsberg                           (302) 658-6541
     Myron Kirschbaum                            Attorneys for Plaintiff Pfizer Inc.
     Joel Katcoff
     Kaye, Scholer,  Fierman, Hays & Handler
     425 Park Avenue
     New York, NY 10022-3598
    
     Dated: December 21, 1999
    
    
                                                        .
    
    
    
    
    
    
    
    RLFI-7.095727-1
    
    
    
                                                    TABLE OF CONTENTS
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • MOTION TO ENFORCE THE DISCOVERY OPINION
  • Joel Katcoff
  • Documents Relating To The Advice Provided To The Board.
  • AHP M U S T C O M P L Y W I T H T H E D I S C O V E R Y O P I N I O N.
  • THE DEFENDANTS MUST PRODUCE THE DIET DRUG I N F O R M A T I O N.
  • In the Discovery Opinion, this Court resolved all of the matters at issue in Pfizer's
  • Pfizer now asks only that the Court order Warner and AHP to comply
  • WARNER MUST COMPLY WITH THE DISCOVERY OPINION.
  • directors were told by attorneys," it has waived the privilege for "all documents and
  • *As of the time of filing, the Warner Letter had not yet been docketed.
  • relating to Mr. Atkins' advice on the Merger Agreement, its no-solicitation clause, the
  • Board meeting taken by any Skadden or D&P attorney.
  • Having Waived Its Claims Of Privilege,
  • Warner relies for its "outside director" rule on In re Dairv Mart Convenience Stores,
  • Nonprivileged documents below the board level often reflect on issues that defendant directors
  • (ordering production of documents below the board level,
  • When the AHP Parties produced non-public documents,
  • pages, a presentation dated August 4, 1999 (POB Ex.
  • "briefing materials" dated
  • In this litigation, Pfizer alleges that AHP,
  • AHP now contends that its board books "have been redacted in such a way that they
  • permit the work product doctrine to cut too broadly and allow parties to encompass too much
  • In Delaware, the rule is established by Jedwab, in which this Court refused to permit either
  • Mr. Clark should be required to sit for a continued deposition because he terminated

  • 3 . DEFENDANT AMERICAN HOME PRODUCTS REPLY MEMORANDUM IN SUPPORT OF MOTION FOR PROTECTIVE ORDER AND IN OPPOSTION TO CROSS-MOTION OF PLAINTIFF

    EXTRACTED KEY WORDS
    PRIVILEGE
    MATERIALS
    DIET DRUG LITIGATION
    WARNER-LAMBERT
    COURT
    DEFENDANTS
    COUNSEL
    AHP
    AMERICAN HOME PRODUCTS
    WARNER
    MERGER
    WARNER-LAMBERT COMPANY
    MOTION
    MATERIALS RELATING
    PLAINTIFF
    PROTECTIVE ORDER
    ATTORNEY-CLIENT PRIVILEGE
    GEORGE
    CROSS-MOTION
    MERGER AGREEMENT
    CONFIDENTIALITY
    MEMORANDUM
    OPPOSITION
    GRAY
    HOWELL
    LORCH
    ALEX
    MANDL
    PRODUCTS CORPORATION
    
                   IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                    IN AND FOR NEW CASTLE COUNTY
    
    
    PFIZER INC.,
    
                            Plaintiff,
    
           V .                                          ) Civil Action No.  17524-NC
                                                        >
    WARNER-LAMBERT COMPANY, ROBERT >
    N. BURT, DONALD D. CLARK, LODEWIJK >
    J . R .   D E   VlNK,  J O H N   A .   GEORGE& >
    WILLIAM H. GRAY, III, B. WILLIAM R. >
    HOWELL, LASALLE D. LEFAL, JR., M.D., 1
    GEORGE A. LORCH, ALEX J.  MANDL, >
    AND      M I C H A E L   I .     SOVERN AND >
    AMERICAN HOME PRODUCTS CORP.,                       )1
                            Defendants                  1
    
                  DEFENDANT AMERICAN HOME PRODUCTS CORPORATION'S
                            REPLY MEMORANDUM IN SUPPORT OF ITS
                              MOTION FOR PROTECTIVE ORDER AND
                      IN OPPOSITION TO CROSS-MOTION OF PLAINTIFF
    
    
                    Defendant American Home Products Corporation  ("AH,"), through its
    
    undersigned counsel, hereby submits its Reply Memorandum in support of its motion for a
    
    protective order with respect to highly confidential and privileged materials relating to certain
    
    products liability litigation involving diet drugs (the "Diet Drug Litigation") and in opposition to
    
    the cross-motion of plaintiff Pfizer Inc.
    
                    As the Court is well aware, these are expedited proceedings in which the parties,
    
    represented by sophisticated counsel, are working diligently to prepare for a hearing on an
    
    important matter. While defendants have strived to accommodate Pfizer's requests for relevant
    
    information, it is Pfizer's tactics, not the defendants' as Pfizer asserts, that have prevented the
    
    
    
                                                                                                   2.
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • WARNER-LAMBERT COMPANY, ROBERT> N. BURT, DONALD D. CLARK, LODEWIJK>
  • GEORGE&>
  • DEFENDANT AMERICAN HOME PRODUCTS CORPORATION'S
  • REPLY MEMORANDUM IN SUPPORT OF ITS
  • MOTION FOR PROTECTIVE ORDER AND
  • IN OPPOSITION TO CROSS-MOTION OF PLAINTIFF
  • protective order with respect to highly confidential and privileged materials relating to
  • the cross-motion of plaintiff Pfizer Inc.
  • represented by sophisticated counsel, are working diligently to prepare for a hearing on an
  • While defendants have strived to accommodate Pfizer's requests for relevant
  • Merger Agreement that allegedly precluded Pfizer from being able to negotiate with Warner.
  • The disputed terms of the merger agreement between AHP and Warner (the "Merger
  • In light of Pfizer's extreme position on waiver, Warner has offered to produce the redacted
  • Diet Drug Litigation have been disclosed.2 Consequently, Pfizer is free to question Warner's
  • and the attorney-client privilege is not being used as either a sword or a shield.
  • under the protection of two confidentiality agreements.
  • Pfuer Inc. V. Warner-Lambert Company,
  • As a preliminary matter, we are surprised by your baseless attack on the volume of documents
  • 10 JOHN A. GEORGES, WILLIAM H. GRAY, III,
  • WILLIAM R. HOWELL, LASAUB 0.

  • 4 . PLAINTIFFS ANSWERING BRIEF IN OPPOSITION TO DEFENDANTS MOTION FOR PROTECTIVE ORDER AND OPENING BRIEF IN SUPPORT OF PLAINTIFFS MOTION TO ENFORCE THE DISCOVER OPINION

    EXTRACTED KEY WORDS
    MOTION
    DEFENDANTS
    PFIZER
    DISCOVERY
    WARNER
    MATERIALS
    AHP
    DISCOVERY OPINION
    DRUG LITIGATION
    COUNSEL
    MERGER AGREEMENT
    FACTS
    DISCLOSURE
    DEL
    PRIVILEGE
    PROTECTIVE ORDER
    DIET DRUG INFORMATION
    DIET DRUG
    WARNER BOARD
    STOCKHOLDERS
    SETTLEMENT
    PLAINTIFF
    TRANSACTION
    BOARD MEETINGS
    DOCUMENTS RELATING
    WARNER DIRECTORS
    WORK PRODUCT
    DISCOVERY GAMESMANSHIP
    TERMINATION PROVISION
    
                                                                                   ,;yj   ~~   ;  (  -'
    
           IN THE COURT OF CHANCERY OF THE STATE OF DELAWARl!?  ii  a ' "' '                           
    
                                 IN AND FOR NEW CASTLE COUNTY
    
    PFIZER INC.
                                                 ;
                   Plaintiff,
                                                 ;
           V. ) CA. No. 17524NC
                                                 1
    WARNER-LAMBERT COMPANY, et al., ) FILED UNDER SEAL
    
                   Defendants.
    
    
    
               PLAINTIFF'S ANSWERING BRIEF IN OPPOSITION TO
                DEFENDANTS' MOTION FOR PROTECTIVE ORDER
                AND OPENING BRIEF IN SUPPORT OF PLAINTIFF'S
                MOTION TO ENFORCE THE DISCOVERY OPINION
    
    
                                                                                                     17
    OF COUNSEL:                                R Franklin Balotti                                    I
                                                                                               r;;  /.I
                                               Jesse A. Finkelstein                            5..:-
                                                                                               .,  .' 
                                                                                               ;       
    Jonathan M. Hoff                           Robert J. Stearn, Jr.                                   
                                                                                               i.  I __
    Cadwalader, Wicker-sham  & Taft            J. Travis Laster                                - -     
                                                                                                       
    100 Maiden Lane                            Richards, Layton & Finger                               
    New York, NY 10038                          One Rodney Square                              k.1     
                                                                                               -.      
                                                                                                       
    (2 12) 504-6000                            P.O. Box 551                                    <       
                                                                                               I;<     
                                               Wilmington, Delaware 19899                      _ --..l
                                                                                                      
                                                (302) 658-6541                                         z
    Dated: December 14, 1999                     Attorneys for Plaintiff Pfizer Inc.
    
    
    
                                                TABLE OF CONTENTS                                      '
    
    
    SNIPPETS:
  • PLAINTIFF'S ANSWERING BRIEF IN OPPOSITION TO DEFENDANTS' MOTION FOR PROTECTIVE ORDER AND
  • OF FACTS
  • Warner's Discovery Gamesmanship.
  • Counsel
  • Subject-Matter Waiver Through Partial Disclosure
  • Bancolro, Del.
  • On November 16, 1999, plaintiff Pfizer, Inc. moved for expedited
  • "Motion to Compel") which sought, among other things, production of documents relating
  • to the AHP Drug Litigation,
  • the Court ordered Warner to produce
  • AlJ documents relating to the AHP Drug Litigation,
  • the Memorandum of Understanding, the Settlement

  • 5 . PLAINTIFFS ANSWERING BRIEF IN OPPOSITION TO MOTION FOR PROTECTIVE ORDER AND OPENING BRIEF IN SUPPORT OF MOTION TO ENFORCE THE DISCOVERY OPINION

    EXTRACTED KEY WORDS
    PRIVILEGE
    MOTION
    DEFENDANTS
    PFIZER
    DISCOVERY
    WARNER
    AHP
    DISCOVERY OPINION
    DRUG LITIGATION
    COURT
    MERGER AGREEMENT
    PROTECTIVE ORDER
    WAIVER
    JEDWAB
    DIET DRUG INFORMATION
    DIET DRUG
    WARNER BOARD
    MATERIALS
    STOCKHOLDERS
    MERGER NEGOTIATIONS
    SETTLEMENT AGREEMENT
    DOCUMENTS RELATING
    BOARD MEETINGS
    PLAINTIFF
    WORK PRODUCT
    TRANSACTION
    WARNER DIRECTORS
    DISCLOSURE
    WORK PRODUCT DOCTRINE
    
                                      IN AND FOR NEW CASTLE COUNTY
    
      PFIZER INC.
    
                        Plaintiff,
                                                      ;
               V.                                     ) C.A. No. 17524NC
    
     WARNER-LAMBERT COMPANY, etal.,                   ; FILED UNDER SEAL
                        Defendants.                   ;       REDACTED
                                                      >          VERSION
                      PLAINTIFF'S ANSWERING  BRIEF IN OPPOSITION TO
                      DEFENDANTS' MOTION FOR PROTECTIVE ORDER
                      AND OPENING BRIEF IN SUPPORT OF  PLAINTIFF'S
                       MOTION TO ENFORCE THE  DISCOVERY OPINION
    
    
     OF COUNSEL:                                    R Franklin Balotti
                                                    Jesse A. Finkelstein
     Jonathan M. Hoff                               Robert J. Steam, Jr.
     Cadwalader, Wickersham & TatI                  J. Travis Laster
      100 Maiden Lane                               Richards, Layton & Finger
     New York, NY 1003 8                            One Rodney Square
     (212) 504-6000                                 P.O. Box 551
                                                    Wilmington, Delaware 19899
     David Klingsberg                               (302) 658-6541
     Myron Kirschbaum                                Attorneys for Plaintiff Pfizer Inc.
     Joel Katcoff
     Kaye, Scholer,  Fierman, Hays & Handler
     425 Park Avenue
     New York, NY 10022-3 598
    
     Dated: December 14, 1999
    
    
    
    
    
    
    
    RLFI-2092562-I
    
    
    
                                                TABLE OF CONTENTS
    
    
    TABLE OF AUTHORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    
    
    SNIPPETS:
  • DEFENDANTS' MOTION FOR PROTECTIVE ORDER
  • MOTION TO ENFORCE THE DISCOVERY OPINION
  • Jedwab: Waiver ThroughDisclosure In Merger Negotiations
  • Subject-Matter Waiver Through Partial Disclosure.
  • THIS COURT SHOULD ENFORCE THE DISCOVERY OPINION.
  • On November 16, 1999, plaintiff Pfizer, Inc. moved for expedited
  • "Motion to Compel") which sought, among other things, production of documents relating
  • to the AHP Drug Litigation,
  • Warner And AHP Announce The Merger.
  • premium to Warner's stockholders.
  • prevented from making a definitive proposal for a vastly superior transaction until after
  • lawsuits arising out ofthe diet drug Phen-Fen
  • and plan of merger (the "Merger Agreement") a series of preclusive and coercive provisions
  • Warner and AHP achieved this result by effectively preventing the Warner Board from
  • by including an illusory provision designed to mislead the Warner directors and Warner's
  • `The Merger Agreement achieves this result by making it a condition precedent to the Merger
  • of materials relating to the AHP Drug L.itigation is directly implicated by the claims Pfizer
  • Warner did not assert a specific objection based on the attorney-client privilege,
  • and Warner did not specifically object to discovery of Diet Drug Information based on the
  • Like Warner, AHP did not assert specific objections based on the attomeyclient privilege or
  • minutes or notes of AHP Board meetings for any dates other than November 1 and

  • 6 . LETTER OPINION

    EXTRACTED KEY WORDS
    WARNER
    PRIVILEGE
    DISCOVERY
    PLAINTIFFS
    RELATING
    DIRECTORS
    ATTORNEY-CLIENT
    CHANCERY
    PFIZER
    AGREEMENT
    BUSINESS
    MOTION
    COMPEL
    LITIGATION
    IMMUNITY
    VALUATION
    STANDARD
    SHIELD
    PROTECT
    PLANS
    USC
    STOCK OPTIONS
    PRODUCTION
    MERGER AGREEMENT
    INTERNAL VALUATION
    MATTER
    ANTICIPATE
    DEFENDAU
    BUSINESS JUDGMENT
    
    LIEC-08-99 WED 06:45 PM CHANCERY CHAMBERS                 FAX NO. 3028565251                      
                                                                                    -Q&L
    
                                          COURT  OF  CYANCEGY
                                                  OF THE
                                           STATE  OF   DELAWARE
    
                                                                                    TklL FAMILY COURT 
                                            Dcccmbcr 8, 1999                               P.O. 50x 501
                                                                                 GEORGETOWN,   Dw~~VAR~
    
    
    
    
    
    
    
         R. Franklin Balotti                                A. Gilchrist Sparks, III
         Richards, Layton & I'ingcr                         hkm-is, Nichols, Arsht & Tunnel1
         l',O, Box 551                                      P.0. Box 1347
         jVilnfingtot7, DE 19S99                            Wilmington, DE 19899
    
         Michael D. Golchm
         Potter hndcrson & Corroon
         P.0. Box 951
         Wihnington,  DB 19899
    
          Joseph A. Rosenthal
         I
    
    
    SNIPPETS:
     
  • Pfizer Inc. and the plaintiff shareholders have asked the Court 10
  • conqxl production of a variety of documents including, but not limited to, dtat% of
  • American J Iome Products Colp, documents indicating or relating to
  • IVarner's own internal valuation, alld directors' notes taken at board meetings.
  • The scope of discovery pursucant to Court of Chancery Rule 26is broad
  • matter involved in the pending action,.
  • At this rclativcly nascent stage of the litigation,, the plaintiffs apparently
  • anticipate the defendau ts ' attempt to invoke the business judgment rule.
  • the plaintiffs likely will ask the Court to apply the Uaocd standard to
  • I acknowlodgc that the information which plaintiffs seek to compel may
  • Whcrc information falls within a privilege,
  • Pfizer questions whether Warner has waived or will waive the privilege.
  • party cannot USC the attorney-client privilege as both a sword and shield.
  • The business strategies immunity entitles a target corporation to shield itscIf
  • YFACTICE IN THE DELAWAKII COURT OF CHANCERY,
  • The immunity does not, however, protect information
  • All drafts of the Merger Agreement and al.1 agreements related
  • Any documents relating to the Wamcr-Lambert Stock Options,
  • the Warner-Lambert Stock Options Plans or any other stock
  • Plaintiffs Motion to Compel is granted with respect to all interrogatorjes.

  • 7 . ANSWER TO AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    COMPLAINT
    ALLEGATION
    DENY
    WARNER-LAMBERT
    PFIZER
    ADMIT
    MERGER AGREEMENT
    COURT
    RESPECTFULLY REFER
    THEREOF
    RESPONSE
    VINK
    AMENDED COMPLAINT SETS
    TRANSACTION
    STEERE
    REALLEGE
    FULLY SET
    BUSINESS
    DEFENDANTS WARNER-LAMBERT COMPANY
    DIRECTORS
    STANDSTILL AGREEMENT
    AHP
    THIRD PARTY
    INFORMATION SUFFICIENT
    LODEWIJK
    UNDERSIGNED ATTORNEYS
    CDA
    DENY KNOWLEDGE
    STOCK OPTION
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                                     
    
                               IN AND FOR NEW CASTLE COUNTY
    
                                                            >
    PFIZER INC.,                                            >
    
                                Plaintiff,
    
    
                                                            >
    WARNER-LAMBERT COMPANY, ROBERT N.                       )
    BURT, DONALD D. CLARK, LODEWIJK J.R. DE                 ) Civil Action No. 17524-NC
    VINK, JOHN A. GEORGES WILLIAM H. GRAY,                  )                               ,. -<"
                                                                                   r..-..:  `.
    III, WILLIAM R. HOWELL, LASALLE D.                                              -:      F",,
                                                            >                                      1 f
    LEFFALL, JR., M.D., GEORGE A. LORCH,                    >
    ALEX J. MANDL, MICHAEL I. SOVERN and                    )                                 I
    AMERICAN HOME PRODUCTS CORP.,                           >>
                                Defendants.                 >                               ; ,.>
                                                            >                         __
    
                              ANSWER TO AMENDED COMPLAINT
    
                    Defendants Warner-Lambert Company, Robert N. Burt, Donald D. Clark,
    
    Lodewijk J.R. de Vink, John A. Georges, William H. Gray, III, William R. Howell,  LaSalle D.
    
    Leffall, Jr., M.D., George A.  Larch, Alex J. Mandl, and Michael I. Sovern (collectively, the
    
    Warner-Lambert Defendants"), by their undersigned attorneys, hereby respond to the numbered
    
    paragraphs of the Amended Complaint of Pfizer, Inc. ("Pfizer"), as follows:
    
                    1. Deny each and every allegation of paragraph 1 of the Amended
    
    Complaint, except admit that Warner-Lambert Company ("Warner-Lambert") and American
    
    Home Products Corporation ("AHP") announced on November 4, 1999 that they had  entered
    
    into an Agreement and Plan of Merger (the "Merger Agreement") dated as of November 3, 1999,
    
    respectfully refer the Court to the Merger Agreement for the true and accurate contents thereof,
    
    
    
    and admit  that,  on November 4, 1999, Pfizer Inc. ("Pfizer") announced a proposal for a
    
    
    SNIPPETS:
  • ANSWER TO AMENDED COMPLAINT
  • Defendants Warner-Lambert Company, Robert N. Burt, Donald D. Clark,
  • Lodewijk J.R. de Vink, John A. Georges, William H. Gray, III, William R. Howell, LaSalle D.
  • Warner-Lambert Defendants"), by their undersigned attorneys, hereby respond to the numbered
  • paragraphs of the Amended Complaint of Pfizer, Inc., as follows:
  • Deny each and every allegation of paragraph 1 of the Amended
  • except admit that Warner-Lambert Company and American
  • respectfully refer the Court to the Merger Agreement for the true and accurate contents
  • transaction in which Pfizer would merge with Warner-Lambert.
  • third party in which "such third party is the acquiring party," and respectfully refer the
  • Standstill Agreement, which is incorporated into the CDA, for the true and accurate contents
  • except deny knowledge or information sufficient to form a belief as to the truth of the
  • Vink, respe8ctfully refer the Court to those letters for the true and accurate contents
  • aver that,,at an October 27, 1999 meeting, Mr. Steere contended that there were certain
  • respect to the proposal for a business combination referred to in the October 25 Letter,
  • Warner-Lambert and AHP dated as of November 3, 1999 (together, the "Stock Option
  • Warner-Lambert's directors will become directors of the merged company,
  • Complaint, except admit that the CDA contains a Standstill Agreement, and respectfully refer
  • Vink opened the conversation by asking, in response to the October 2.5 Letter, what Pfizer
  • State that paragraph 64 of the Amended Complaint sets forth a legal
  • reallege the responses set forth in paragraphs 1 through 72 of this Answer as if fully set

  • 8 . AMERICAN HOME PRODUCTS ANSWER TO AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    AHP
    COMPLAINT
    INSOFAR
    DENIES
    RESPONSE
    MERGER
    LAW
    PURPORTS
    WARNER
    MERGER AGREEMENT
    DENIES KNOWLEDGE
    INFORMATION SUFFICIENT
    TRUTH
    AGREEMENT SPEAKS
    AHP RESPECTFULLY REFERS
    FULLY SET
    PLAINTIFF
    AHP REPEATS
    REALLEGES
    PRECEDING
    DEFENDANT AMERICAN
    CONFIDENTIALITY AGREEMENT
    AMERICAN HOME PRODUCTS
    AMENDED COMPLAINT
    DEFENDANT AMERICAN HOME
    PROPOSED TRANSACTION ENTAILS
    WARNER STOCK
    SHAREHOLDERS
    AMERICAN WARNER ENTITY
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                                     
                                                                                                      <
                                                                                                -f--f
                                                                                                ._     
                                                                                                      
                                IN AND FOR NEW CASTLE COUNTY
    
    
    PFIZER INC.,                                 >
    
                          Plaintiff,
                                                 >
           v.                                    >>
    WARNER-LAMBERT COMPANY,                      >
    ROBERT N. BURT, DONALD D. CLARK,)
    LODEWIJK, J.R. DE VINK, JOHN A. )
    GEORGES, WILLIAM H. GRAY, III,               )
    B. WILLIAM R. HOWELL, LASALLE D.  )
    LEFFAL, JR., M.D., GEORGE A. LORCH, )
    ALEX J. MANDL, AND MICHAEL I.                )
    SOVERN AND AMERICAN HOME                     >
    PRODUCTS CORP.,                              >
                                                 >
                          Defendants.            )
    
    
                          DEFENDANT AMERICAN HOME PRODUCTS
                    CORPORATION'S ANSWER TO AMENDED COMPLAINT
    
                    Defendant American  H:ome Products Corporation  ("AHP"), by its undersigned
    
    counsel, hereby responds as follows to each numbered paragraph of the Amended Complaint (the
    
    "Complaint") filed in the above-captioned case:
    
                    1. Denies the allegations contained in paragraph 1 of the Complaint insofar
    
    as they attempt to place a dollar value on the proposed merger of equals between AHP and
    
    Warner-Lambert Company ("Warner"), and states that the proposed transaction entails an
    
    cschange  of 1.4919 shares of AHP  sto& for each share of Warner stock, giving Warner
    
    shareholders a 50.1% ownership of the combined American Warner entity. Further, AHP denies
    
    the allegations of paragraph 1 of the Complaint to the extent they characterize Pfizer's statements
    
    regarding Warner as an "$82 billion proposal." First, the highly conditional statements made by
    
    
    SNIPPETS:
  • CORPORATION'S ANSWER TO AMENDED COMPLAINT
  • Defendant American H:ome Products Corporation,
  • Denies the allegations contained in paragraph 1 of the Complaint insofar
  • and states that the proposed transaction entails an
  • cschange of 1.4919 shares of AHP sto& for each share of Warner stock,
  • shareholders a 50.1% ownership of the combined American Warner entity.
  • states that insofar as paragraph 2 purports to state conclusions of law, no response is
  • Denies knowledge or information sufficient to form a belief as to the truth
  • Confidentiality Agreement speaks for itself and AHP respectfully refers the Court to the
  • and AHP respectfully refers the Court to the letters for the true and accurate contents
  • required, and with respect to Plaintiffs references to provisions of the Merger Agreement, the
  • Merger Agreement speaks for itself and AHP respectfully refers the Court to the Merger
  • Admits that Plaintiff purports to seek relief in paragraph 66 of the
  • paragraph of the Complaint as if fully set forth herein.
  • AHP repeats and realleges the responses to each and every preceding
  • The undersigned hereby certifies that on December 3, 1999, true and correct copies of

  • 9 . LETTER TO CHANCELLOR CHANDLER

    EXTRACTED KEY WORDS
    MERGER AGREEMENT
    COURT
    STOCKHOLDERS
    SCHEDULE
    PRELIMINARY INJUNCTION
    CHANDLER
    AHP
    HONORABLE WILLIAM
    STOCK OPTION
    REQUEST
    DEFENDANTS
    STOCK-FOR-STOCK TRANSACTION
    PROVISIONS
    PROPOSALS
    IRREPARABLE INJURY
    RELATED DOCUMENTS
    COMPLAINT
    CHANCELLOR
    CONSENT SOLICITATION
    ORIGINAL COMPLAINT
    EXPEDITED PROCEEDINGS
    DIRECTORS
    CHALLENGED PROVISIONS
    ADJUDICATION
    TERMINATION FEE
    DISCOVERY
    SCHEDULING
    IRREPARABLE HARM
    COMMON STOCK
    
    RlCHARD   i. SUTTON                                                                                
    JOHAN,,ES   R.  KRAHMER                                                                            
    0.  FRANClS   BlONDI                                                                               
    LEWIS 5. BLACK, JR.                                                                                
    p*,  II
        -c   \A,,:,   =$.I
                ..,__-.,                                                                               
       LLIAM 0.  LAMOTTE.   I,,                 M ORRIS , N ICHOLS , A RSHT   &   T UNNELL             
                                                                                                       
                                                           I201   NORTH   MARKET   STREET              
                                                                                                       
                                                                     P.O. Box  1347                    
                                                                                                       
                                                                                                       
                                                                                                       
                                                      WILMINGTON,         DELAWARE   19899-1347        
                                                                                                       
                                                                                                       
                                                                                                       
                                                                                                       
                                                               TELEPHONE   (302)   658-9200            
    DONALD NELSON  ISKEN                                                                               
    DONALD  E. REID                                             T E L E C O P Y   (302)  6 5 8 - 3 9 8
    OENISON   H.  H*TCH.  JR.                                                                          
                                                                                                       
    THOMAS  C. GRIMM                                                                                   
    KENNETH  J. NACHBAR                                       WRITER'S   D I R E C T   DIAL   N U M B E
    ANDREW M. JOHNSTON                                                                                 
    MARY  S GRAHAM                                                        (302)575-7276                
                                                                                                       
    MICH*EL  HOUGHTON                                                                                  
    MATTHEW  8.  LEHR                                                                                  
                                                                                                       
    THOMAS  R.  PULSIFER                                                                               
    JON  E.  ABR*MCMK                                             November 18, 1999
                                                                                                       
                                                                                                       
                                                                                                       
    - _ _. -. -                                                                                        
    JONATI-IAN   I.  iESSNER
    ROBERT J.  DEHNEY
    COLM  F. CONNOLLY
    
                        VIA FACSIMILE & HAND DELIVERY
    
    
                        The Honorable William B. Chandler, III                                         
                        Chancellor
                        Court of Chancery                                                              
    
    SNIPPETS:
  • Dear Chancellor Chandler:
  • We write to advise the Court of AHP's
  • On November 4, 1999, WL and AHP announced that the
  • two companies had entered into a Merger Agreement providing for a stock-for-stock transaction
  • The Honorable William B. Chandler,
  • pursuant to which each WL stockholder will receive 1.49 shares of AHP common stock for each
  • The Merger Agreement contain
  • reciprocal stock option and termination fee provisions.
  • AHP and WL intend to hold their respective stockholders'
  • Pfizer publicly announced a takeover proposal for WL.
  • Agreement and related documents, both of which are integral parts of the merger-of-equals.
  • Contemporaneously with the announcement of its proposal, Pfizer filed a "barebones" complaint
  • Pfizer's original complaint generally alleged that the WL directors breached their
  • The Honorable William B. Chandler,
  • Warner-Lambert and its directors as a direct participant in the Merger Agreement because
  • On November 8, 1999, Pfizer served a request for the production of documents.
  • Pfizer did not file a motion for expedited proceedings.
  • and before it notified the defendants or this Court that it intended to seek an expedited
  • the market that its conditional proposal was real, did it file its motion for a preliminary
  • Despite the fact that Pfizer has not yet begun any consent solicitation,
  • This Court will not schedule an expedited preliminary injunction hearing unless there is a
  • colorable claim and show a sufficient possibility of a threatened irreparable injury,
  • discovery and to schedule a preliminary injunction hearing).
  • Pfizer has not demonstrated any good cause that would justify the scheduling
  • There Is No Present Prospect Of Imminent Irreparable Harm
  • proposals, the stockholders would be unable to cast an informed vote.
  • IDiceon's] shareholders do not need an adjudication of the by-law
  • challenged provisions in the Merger Agreement on the rushed schedule proposed by Pfizer.

  • 10 . MOTION FOR EXPEDITED PROCEEDINGS

    EXTRACTED KEY WORDS
    PFIZER
    WARNER
    COURT
    WARNER-AHP
    DEFENDANTS
    MERGER PROPOSALS
    MERGER AGREEMENT
    EXPEDITED PROCEEDINGS
    COMPLAINT
    DELAWARE COURTS
    STOCKHOLDERS
    WARNER DIRECTORS
    WARNER SHAREHOLDERS
    MOTION
    NO-PREMIUM
    PROVISIONS
    IRREPARABLE HARM
    ORDER EXPEDITING
    CONSENT SOLICITATION
    DEFENDANT AMERICAN HOME
    TRANSACTION
    AMENDED COMPLAINT
    AHP
    IRREPARABLE INJURY
    PROMPT HEARING
    AMERICAN HOME PRODUCTS
    FRANCHISE RIGHTS
    PERMISSION
    TERMINATION
    
                      IN THE COURT OF CHANCERY OF THE STATE OF
    
                                           IN AND FOR NEW CASTLE COUNTY
    
     PFIZER INC.
                                                         ;
                        Plaintiff,                       >>
               V.                                        ) C.A. No. 17524
                                                         >
     WARNER-LAMBERT COMPANY, et                          )
     al.,
    
                        Defendants.
    
                                                   NOTICE OF MOTION
    
     TO:       Michael D. Goldman, Esquire                     A. Gilchrist Sparks, Esquire
               Potter Anderson & Corroon LLP                   Morris, Nichols, Arsht  & Tunnel1
               Hercules Plaza                                  1201 Market Street
               Wilmington, DE 1980 1                           Wilmington, DE 19801
               Attorneys for the Individual                    Attorneys for American Home Products Co.
               Defendants and Warner-Lambert
               Company
    
    
    
                       PLEASE TARE NOTICE that the attached Motion for Expedited Proceedings will
    
    be presented to the Court at the earliest convenience of the Court and counsel.
                                                                         I-
                                                                f7cd&$
                                                                    I    /ii               ,           
     OF COUNSEL:                                               R. Franklin Balotti
                                                               Jesse A. Finkelstein                    
     Dennis J. Block                                                                                   
                                                               J. Travis Laster
     Cadwalader, Wickersham & Taft                             Richards, Layton & Finger
      100 Maiden Lane                                          One Rodney Square
     New York, NY 1003 8                                       P.O. Box 551
     (212) 504-6000                                            Wilmington, Delaware 19899
                                                               (302) 658-6541
                                                                Attorneys for Plaintiff
    
                                                               Dated: November 16, 1999
    
    
    RLFl-2078653-2
    
    
    
    SNIPPETS:
  • PFIZER INC.
  • Defendants and Warner-Lambert
  • PLEASE TARE NOTICE that the attached Motion for Expedited Proceedings will
  • be presented to the Court at the earliest convenience of the Court and counsel.
  • for an order expediting the proceedings in this matter by shortening
  • and setting the case for a prompt hearing.
  • defendant American Home Products Co. announced a no-premium, $72 billion, stock-for-stock
  • would entail the payment of a significant premium to Warner shareholders.
  • merger proposal, and to coerce Warner's shareholders into voting for the Merger Agreement, As
  • are necessary to prevent the irreparable harm which shareholders will suffer if other
  • currently is coercing Warner's stockholders and interfering with their ability to vote in the
  • Expedited relief is necessary to remove these coercive provisions and enable the
  • proposal to Warner or its stockholders without Warner's permission.
  • (Amended Complaint 7 3, hereinafter, "AC -`I).
  • the Warner Directors supported Mr. de Vink, while Mr. Burt indicated that, although he had
  • vote on competing merger proposals, and to prevent any third-party such as Pfizer from
  • consummating a transaction with Warner that provides superior value for the Warner
  • between Warner and any entity other than AHP.
  • including due to Warner's pursuit of a superior merger proposal (the "Termination Fee").
  • Pfizer is in the process of commencing the Consent Solicitation,
  • Pfizer Files The Amended Complaint
  • Delaware courts repeatedly have ordered expedited proceedings in cases such as this,
  • (describing the immediate and irreparable injury inflicted on competing or potential bidders
  • immediate and coercive effect on the Warner shareholders' ability to exercise their franchise

  • 11 . AMENDED COMLAINT

    EXTRACTED KEY WORDS
    MERGER
    PFIZER
    PROPOSALS
    SHAREHOLDERS
    PLAINTIFF
    TRANSACTION
    INFORMATION/NO
    MERGER AGREEMENT
    DEFENDANTS
    VINK
    WARNER-AHP MERGER
    PROVISION
    STOCKHOLDERS
    WARNER DIRECTORS
    PREMIUM
    AHP
    TERMINATION FEE
    ALLEGATION SET
    FIDUCIARY DUTIES
    HIGHEST DUTIES
    SIGNIFICANT PREMIUM
    POISON POOLING PROVISION
    SUPERIOR MERGER PROPOSALS
    DEAL PROVISIONS
    FIDUCIARY OBLIGATIONS
    REASONABLENESS
    DEFENDANTS OWE
    CONSENT SOLICITATION
    ADEQUATE REMEDY
    
                                                                                        .  .  .
    
    
    
                   IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                  IN AND FOR NEW CASTLE COUNTY
    
    PFIZER INC.,
    
                                               Plaintiff,
    
                                    V.
    
    WARNER-LAMBERT COMPANY, ROBERT N. BURT,                              Civil Action No.
    DONALD D. CLARK, LODEWIJK J.R. DE VINK,
    JOHN A. GEORGES, WILLIAM H. GRAY, III, B.
    WILLIAM R. HOWELL, LASALLE D. LEFFAL, JR.,
    M.D., GEORGE A. LORCH, ALEX J. MANDL, MICHAEL
    1. SOVERN AND AMERICAN HOME PRODUCTS
    CORP.,
    
                                               Defendants.
    
    
    
                                          AMENDED COMPLAINT
    
                      Plaintiff, by and through its undersigned counsel, alleges as and for its amended
    
    complaint, upon personal knowledge as to itself and its own acts, and as to all other matters upon
    
    information and belief, as follows:
    
                                          NATURE OF THE ACTION
                      1. On November 4, 1999, Warner-Lambert  Company ("Warner") and American
    
    Ho-me Products Corporation ("AHP") publicly announced a non-premium stock-for-stock $72
    
    bilhon merger (the "Merger" or the "Warner-AHP Merger"). On the same day, Pfizer Inc.
    
    ("F%zer")  announced its own $82 billion proposal to merge with Warner in a transaction that
    
    (unlike the Warner-AHP Merger) would entail the payment of a significant premium to Warner
    
    shareholders (the "Pfizer Proposal").
    
    
    
    
    SNIPPETS:
  • bilhon merger.
  • On the same day, Pfizer Inc.
  • would entail the payment of a significant premium to Warner
  • Defendants repeatedly were made aware of Pfizer's interest in pursuing a merger with Warner,
  • grossl,y inappropriate defensive provisions in the Merger Agreement designed to preclude
  • Warner's stockholders from considering and voting on a competing, superior merger proposal,
  • and coercing Warner's shareholders into voting for the Merger Agreement.
  • fiduciary responsibilities and attempting to coerce Warner's shareholders to approve the
  • informed Warner's chairman, Lodewijk J.R. de Vink, that Pfizer was eager to make a merger
  • the payment of a significant premium to Warner stockholders.
  • Anthiony Bums, approached two Warner Directors, Robert N. Burt and William R. Howell,
  • shareholders of its Proposal before Warner entered into a definitive agreement with AHP,
  • the Warner Defendants agreed to onerous and unlawful provisions -- the "No Information/No
  • Deal Provisions" -- in the Merger Agreement that do not serve any legitimate purpose.
  • transaction with Warner that provides superior value for the Warner shareholders.
  • the Warner Directors have breached their fiduciary obligations to
  • (the "Poison Pooling Provision" and hereafter included within the "Merger Agreement").
  • improper limitation on the Warner Directors' exercise of their fiduciary duties (the "No Hand
  • The Termination Fee was designed to frustrate Pfizer's merger proposal by virtue of its
  • Plaintiff Pfizer is a Delaware corporation with its principal place of business
  • superior merger proposals.
  • other than in connection with the Consent Solicitation.
  • plaintiff, as well as other Warner shareholders, have no adequate remedy at law.
  • Plaintiff repeats and realleges each and every allegation set forth in the
  • The Director Defendants owe Warner's stockholders the highest duties of
  • poten.tial business combination with Pfizer that falls outside of the range of reasonableness.

  • 12 . COMPLAINT

    EXTRACTED KEY WORDS
    MERGER AGREEMENT
    PFIZER
    PROPOSAI
    DIRECTORS
    AMERICAN HOME
    LAMBERT
    CONNECTION
    STOCK OPTION
    REPRESENTATIVES
    BREAK-UP FEE
    BREACH
    WARNER-LAMBERT SHAREHOLDER
    FEE
    PROVISIONS
    SUPERIOR
    PLAINTIFF
    ENTERING
    PARTICIPANT
    WILLIAM
    AMERICAN HOME-WARNER
    ACQUISITION
    PARTIES
    STANDSTILL
    PERMISSION
    PREMIUM
    EXPRESSIONS
    PREVENTING
    REQUESTS
    PAVMENT
    
                    :,.'
    -,`,.      -4  ,.-                           i  ,,*
                                                 /
                                           j  `ah:
    t  -+  `!                         `-  I
                                   2, _
                            i ;
        `\ -*-`-
                                                           IN THE COURT OF CHANCERY OF THE STATE OF
    
                                                                          ZN AND FOR NEW CASTLE COL%TY
    
                                     PFIZER INC.
    
                                                                   PI aintiff,
    
    
                                                                                          >
                                     WARNER-LAMBERT  COMPANY,                             >
                                     ROBERT N. BURT, DONALD D. CLARK, )
                                     LODEWIJK J.R. DE VINK, JOHN A.                       )
                                     GEORGE& WILLIAM H. GRAY, III,                        )
                                     B. WILLIAM R. HOWELL, LASALLE D.  )
                                     LEFFAL, JR., M.D., GEORGE A. LORCH, )
                                     ALEX J. MANDL AND MICHAEL 1.                         )
                                     SOVERN AND AMERICAN HOME                             1
                                     PRODUCTS CORP.                                       >
    
                                                                   Defendants.            1
                                                                                                       
                                                                                      COMPLAINT
    
                                                            Plaintiff, by and through its undersigned
    
                                     upon personal knowledge as to itself and its own acts, and as to
    
                                     and belief based upon, among other things, the investigation of
    
                                                                                     THE PARTIES
    
                                                            1.     Plaintiff Pfizer Inc ("Pfizer") is a
    
                                    place of business in New York, New York
    
                                                            3
                                                            A.     Defendant Warner-Lambert Company 
    
                                     corporation with its principal place of business in Morris 
    
    
    SNIPPETS:
  • Alex J. Mandl and Michael I. Souern are directors of Warner-Lamber-t
  • Defendant American Home Products Corp is a Delaware corpol-anon
  • THE AMERICAN HOME-WARNER LAMBERT MERGER AGREEWlEh"7
  • Under the American Home-Warner-Lambert merger agreement (the "Mer-zer
  • each Warner-Lambert shareholder is to receive I .49 shares of .4inerican I lij~llv
  • The Merger Agreement requires the payment of a br-eak-up fee of $2 billloll
  • utilizing an accounting method known as "pooling" in connection with an acquisition of`
  • PFIZER'S REPEATED ATTEMPTS TO INFORM THE WARNER LAMBERT BO.ARD RIEGARDING ITS DESIRE TO MAKE
  • Pfizer and Warner-Lambert are parties to a co-marketing ayecmcnt III
  • arrangement, the parties also entered into a standstill agreement, which, among other thongs.
  • permission from Warner-Lambert to make such a proposal.
  • even consider Pfizer's expressions of interest.
  • requested permission to make a merger proposal that would enlail the pavment of a
  • premium to Warner-Lambert shareholders
  • Warner-Lambert representatives, Warner-Lambert refused even to permit Pfizer- to make a
  • Plaintiff requests declaratory relief that the stock option and break-up t`ee III
  • preventing the implementation of the break-up fee and stock option provisions in the k,ler.ser
  • entering into the Merger Agreement, and, in particular.
  • provisions with respect to the break-up fee and stock option.
  • American Home has aided and abetted a breach of fiduciary duty by Wal-ner Lambert and its
  •    |