Gilat Satellite Networks Ltd., a worldwide leader in satellite networking technology, solutions and services, announces that it was advised that a complaint was filed by Comtech Telecommunications Corp. and by its subsidiary, Convoy Ltd., against Gilat in the Court of Chancery in the State of Delaware, on a confidential basis, allegedly seeking a declaratory judgment that (i) any unilateral actions taken by Gilat relating to the disposition or restructuring of its subsidiary in Russia or (ii) any unilateral action taken by Gilat concerning Comtech’s pending application to the Russian regulatory authorities, constitute violations of the Merger Agreement between Gilat and Comtech.
Gilat has not been served with such purported complaint.
Such purported complaint was allegedly filed in response to Gilat’s demand that, in connection with Comtech’s pending application to the Russian regulatory authorities and contrary to its actions thus far, Comtech is obligated to use its reasonable best efforts to consummate the merger, and that Gilat does not intend to sit idly and wait for the drop-dead date of the Merger Agreement.
Gilat believes Comtech is in breach of its obligations under the Merger Agreement and that its alleged claims are without merit, and intends to vigorously defend its position in connection with the matters raised by Comtech.