After a busted buyout, Gilat wants its $47M breakup fee

Israel's Gilat Satellite Networks Ltd. has officially terminated its agreement to be taken private after the group of private equity firms balked at closing the deal.

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Buyout shops Gores Group LLC, Mivtach Shamir Holdings Ltd. and DGB Investments Inc. proposed changes to the $475 million deal, which was announced in March. However, Gilat's board balked at the "substantially different" proposals, setting up a game of chicken that headed up to the deal's closing deadline of Aug. 28, 2008. Gilet is now looking for its $47.3 million breakup fee, which it claims is payable to the company "by Sept. 10, 2008, in the event of an intentional breach of the agreement by the purchasers." - George White

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See story on the March LBO on TheDeal.com

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