Affiliated Computer Services, caught in a bitter battle between members of the company's board and its chairman, said in a statement November 1 that five board members had resigned after initially refusing to do so. [...] Now that the five independent board members have resigned and two potential buyers are gone, it's unclear how ACS will proceed, sources say.
The dispute began several weeks ago when Mr. Deason and private equity firm Cerberus Capital Management withdrew their $6.2 billion bid to buy the company, saying that the board had dragged its feet on the offer while the credit market dried up. Mr. Deason then demanded the resignations of the five independent board members, accusing them of mismanagement. The departing members are Robert Holland III, J. Livingston Kosberg, Dennis McCuistion, Joseph O'Neill and Frank Rossi. In a separate action, board member John Rexford also has resigned from the board but will remain as executive vice president at the company. ACS also said Wednesday that the directors have agreed to withdraw their lawsuit against the company and Mr. Deason.
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Disclosure: my wife owns a small number of ACS shares due to her previous participation in an ESPP while employed there.
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