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Latest Business News

Sovereign Bancorp Sues Major Shareholder

Thursday, November 10, 2005 11:20:04 PM
By DEBORAH YAO

PHILADELPHIA (AP) - Sovereign Bancorp Inc., which has been battling some shareholders over pending acquisition deals, sued its largest stockholder Thursday over demands that the thrift open certain company records to inspection.

The Philadelphia-based thrift said the request by Relational Investors LLC to examine Sovereign's records goes beyond what is permitted by state law. Sovereign also alleged that Relational's request masks its true purpose, which is to use any information unearthed to "attack the integrity and injure the credibility and reputation" of the company.

Sovereign, which filed the lawsuit in the Court of Common Pleas of Berks County, in Reading, is seeking a declaration that Relational's request to inspect its books and records fails to comply with state law governing corporations.


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