4
| News |

After Losing $6 Billion Buyout Bid, ACS Chairman Tells the Board to Scram

^
Keep Dallas Observer Free
I Support
  • Local
  • Community
  • Journalism
  • logo

Support the independent voice of Dallas and help keep the future of Dallas Observer free.

Only one day after Cerberus Capital Management LP decided not to buy out Dallas-based Affiliated Computer Services after all -- for, like, $6.2 billion -- ACS's chairman, Darwin Deason, is demanding the company's independent directors resign. Immediately. Wrote Deason in a letter dated today, he wants Robert B. Holland III, J. Livingston Kosberg, Dennis McCuistion, Joseph P. O’Neill and Frank A. Rossi to get themselves adiosed immediately. Because:

"The Board has come under increasing shareholder criticism for its failure to consummate a transaction based on the Cerberus offer or present a superior strategic alternative.

Irrespective of the merit of these claims, they clearly demonstrate that the Board has lost the trust and support of the Company’s shareholders. It is in the shareholders’ best interests to provide the Company with new strategic leadership. As the Company’s founder and the Chairman of the Board, I must respectfully ask that you resign today from the Board."

Helpfully, Deason -- who would have been part of the new ownership had the Cerberus deal gone down -- has included a list of folks with whom he'd like to replace the existing board. This won't get ugly at all. --Robert Wilonsky

Update: The five board members resigned, then threw a hissy. Quitters.

Keep the Dallas Observer Free... Since we started the Dallas Observer, it has been defined as the free, independent voice of Dallas, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Dallas with no paywalls.

We use cookies to collect and analyze information on site performance and usage, and to enhance and customize content and advertisements. By clicking 'X' or continuing to use the site, you agree to allow cookies to be placed. To find out more, visit our cookies policy and our privacy policy.

 

Join the Observer community and help support independent local journalism in Dallas.

 

Join the Observer community and help support independent local journalism in Dallas.