| Updated:
Del Monte and BarCap settle
DEL Monte and its financial adviser Barclays Capital yesterday agreed to pay $89.4m (£57.9m) to settle a lawsuit that claimed they had not acted in investors’ best interests in the food company’s $4bn buy-out last year.
Investors claimed that Barclays, which advised Del Monte on its sale to a private equity group led by KKR, had a conflict of interest because it also arranged financing for the buyers.
The two parties will share the burden of the settlement, with BarCap paying $23.7m upfront to Del Monte shareholders and ceding $21m of advisory fees.