Less than 24 hours later, IBP officials filed a suit of their own, asking a chancery court judge in New Castle County, Del., to force Tyson to go through with the deal. Hines, a Fayetteville resident, is to meet with IBP attorney Jim Crouch next Monday at the law office of Cypert, Crouch, Clark and Harwell in Springdale. Stephens Inc. served as Tyson's investment advisor throughout the merger proceedings, while IBP's equivalent was Credit Suisse First Boston, a New York-based investment house. The subpoena is a routine part of the discovery process as both sides prepare for their fight in the courtroom.
Discovery is the gathering of information by attorneys before a court trial begins.
Tyson's due diligence involved examination of IBP's operations and management and the verification of material facts before and during the acquisition process. IBP's request goes to the very core of both companies' lawsuit, since IBP has claimed in its March 30 lawsuit that Tyson officials knew about its financial problems concerning DFG Foods, the much-maligned IBP subsidiary. IBP's lawsuit was actually attached to a pending lawsuit filed in December by a group of IBP shareholders who wanted Tyson's merger bid stopped immediately, said Crouch. The two lawsuits were consolidated when Tyson pulled out of the merger deal. Although IBP's lawsuit against Tyson in Delaware is a completely separate matter from the lawsuit filed in Fayetteville by Tyson officials, the subpoena for Hines had to be filed in Washington County for it to be recognized by the court and to give notice to all parties involved.