IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
AQUILA, INC. (f/k/a UTILICORP
UNITED INC .),
Plaintiff,
v. > C.A. No. 19497
)
QUANTA SERVICES, INC., I- '
JAMES R. BALL, JOHN R. COLSON, )
VINCENT D. FOSTER, LOUIS C. )
GOLM, JERRY J. LANGDON, )
GARY A. TUCCI, JOHN R. WILSON, )
QUANTA SERVICES, INC. STOCK )
EMPLOYEE COMPENSATION TRUST, )
and WACHOVIA BANK, N.A., >
>
Defendants. >
MEMORANDUM OPINION
Submitted: May 7, 2002
Decided: May 10, 2002
Alan J. Stone, Esquire, Megan E. Ward, Esquire, Yvette C. Fitzgerald, Esquire,
MORRIS, NICHOLS, ARSHT & TUNNELL, Wilmington, Delaware; Scott A.
Edelman, Esquire (argued), Thomas A. Arena, Esquire, Daniel Perry, Esquire,
Kylie Davidson, Esquire, MILBANK, TWEED, HADLEY & McCLOY LLP,
New York, New York; Attorneys for Pluintif.
Kevin G. Abrams, Esquire (argued), Srinivas M. Raju, Esquire, Peter B. Ladig,
Esquire, Kelly A. Green, Esquire, John D. Hendershot, Esquire, RICHARDS,
LAYTON & FINGER, P.A., Wilmington, Delaware; Andrew C. Houston,
Esquire (argued), Stephen R. DiPrima, Esquire, Matthew H. Baughman,
Esquire, WACHTELL, LIPTON, ROSEN & KATZ, New York, New York;
Attorneys for Defendants Quanta Services, Inc., James R. Bail, John R. Colson,
Vincent D. Foster, Louis C. Golm, Jerry J. Lungdon, Gary A. Tucci, and John
R. Wilson.
Cathy L. Reese, Esquire, BLANK ROME COMISKY & MCCAULEY LLP,
Wilmington, Delaware, Attorney for Defenabnts Quanta Services, Inc. Stock
SNIPPETS:
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
AQUILA, INC. (f/k/a UTILICORP
EMPLOYEE COMPENSATION TRUST,)
Alan J. Stone, Esquire, Megan E. Ward, Esquire, Yvette C. Fitzgerald, Esquire, MORRIS,
Cathy L. Reese, Esquire, BLANK ROME COMISKY & MCCAULEY LLP, Wilmington, Delaware, Attorney
This lawsuit challenges actions taken by a Special Committee of the board
initiated by plaintiff and insurgent shareholder Aquila,
named as defendants in this action-James R. Ball, John R. Colson, Vincent D.
opposing slate of directors at Quanta's upcoming annual meeting.
Aquila owned approximately 38% of Quanta's outstanding shares.
for the proxy contest, ultimately adopting the SECT on March 13.
employees of Quanta to vote these shares.
The effects of this voting provision
are to dilute Aquila's voting power and to increase Quanta management's chance
board as long as Aquila's fully diluted ownership of Quanta remained below
or management of Quanta, but instead for its financial and tax benefits.
advisors Goldman Sachs & Co. and Wachtell, Lipton, Rosen &
and its effect on Quanta's shareholders.
Aquila has moved for a preliminary injunction preventing the voting of the SECT
demonstrates a reasonable probability of success on the merits, irreparable harm
Aquila argues that the voting of the SECT shares must be enjoined for two
Cantor Fitzgerald, L. P. v. Cantor, 724 A.2d 571, 579 (Del.
will be able to sustain their initial burden of satisfying both the reasonableness
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