Gilat Satellite (NASDAQ:GILT), currently in a pending transaction with Comtech Telecommunicatons (NASDAQ:CMTL), announced it will seek remedies under the merger agreement following Comtech's complaint and claim that Gilat suffered a Material Adverse Effect due to the pandemic.
Gilat notes it rejects Comtech's claim and effort to end the proposed merger and that it did not suffer a Material Adverse Effect. Gilat also notes that Comtech "willfully breached its obligations" to ensure Russian Federal Anti-Monopoly Service FAS approval is not received.
Gilat will file a counter-claim, seeking "hundreds of millions" of dollars in damages suffered by the co. and its shareholders due to the Comtech issue. GILT notes it will seek a declaration that Comtech cannot end the merger.
Gilat shares are down 35% year-to-date.
