Plaintiff’s lawyer William Lerach is already looking to make a handsome $1 billion fee as lead counsel in the main Enron class action securities fraud lawsuit. Now, he’s looking for a little more from an Enron spinoff.
Yesterday, Lerach’s firm filed a lawsuit (press release here) in state district court in Houston over the proposed management leveraged-buyout of Houston-based oil and gas pipeline operator, Kinder Morgan Inc. (previous posts here and here). A lawsuit filed last week in Kansas on similar grounds beat Lerach’s lawsuit to the courthouse door in the race to be the first lawsuit to challenge the proposed leveraged buyout.
As one would expect, Lerach’s lawsuit contends that KM’s officers and directors violated state law by proposing a price of $100 per share, which it said was “grossly inadequate and unfair.” Of course, that allegation is pure speculation at this point in that the proposed buyout is still subject to being outbid by a superior offer for the company. Expect the state court lawsuit to be removed by KM to federal court rather quickly, where it will likely rest fallow while either the proposed buyout or a superior proposal for the company is worked out.
Daily Archives: June 6, 2006
Elk tells Lakeside and the USGA to shove it
Houston’s Steve Elkington failed to qualify for next week’s U.S. Open Golf Tournament at New York’s venerable Winged Foot Golf Club during yesterday’s sectional qualifying tournament at Houston’s Lakeside Country Club, but at least he went out with a splash.
As this Steve Campbell/Houston Chronicle article reports, Elk left Lakeside yesterday before even teeing it up when U.S. Golf Association officials informed him that he could not wear metal spikes on his golf shoes while playing the golf course at Lakeside, which has a local rule that players may only use soft spikes (which cause less wear and tear on the greens) on the course. Inasmuch as the PGA Tour allows its members to use either metal or soft spikes in its golf tournaments and many other golf courses that the USGA uses for its qualifying tournaments have the same rule, Elk — who is a notorious golf traditionalist — told the USGA officials at Lakeside that adoption of a different rule at the Lakeside qualifier was wrong and left in a huff before his 8:50 a.m. tee time, leaving the USGA officials blathering about “a rule is a rule.”
Quick tip to Lakeside — it’s not going to do any damage to your greens to allow players in one golf tournament to use metal spikes. Next time, waive the friggin’ local rule for the tournament.
By the way, two college players — Ryan Baca of Baylor and Ryan Posey of Oklahoma State — earned the two Open spots at Lakeside by shooting sturdy 6-under-par 136’s over the 36 hole qualifier.
The new Texans GM
Houston Texans’ owner Bob McNair completed his overhaul of the team’s management yesterday by naming former Denver Bronco’s assistant Rick Smith as the second general manager in the Texans’ five year history. Smith replaces Charley Casserly, who resigned last month amidst widespread criticism regarding the Texans’ player personnel choices and a disastrous previous season. McNair began the overhaul earlier this year by firing head coach Dom Capers and replacing him with former Broncos offensive coordinator and Houston native, Gary Kubiak.
The hiring of Smith also completes an interesting change in management philosophy for McNair, who originally went with the strong GM management approach in hiring Casserly as the Texans’ first employee. Casserly was the public face of the team’s management, much more so then former head coach Capers. Although that approach placed most authority in football operations in Casserly’s hands, it also sealed his fate as he became increasingly verbose with the media over the past season in attempting to deflect criticism over the team’s horrifying performance. My sense is that Casserly’s manipulation of the media during the team’s horrendous season did not sit well with McNair, a classy man who does not appreciate such public posturing.
With the hiring of Smith, McNair has completed the adoption of the Broncos’ management system in which the head coach has the decision-making authority on personnel matters and the GM serves in a support role. Under the Texans’ new regime, it’s clear that head coach Kubiak is calling the shots, just as Broncos coach Mike Shanahan does in Denver.
What’s particularly interesting about the shift in the Texans’ management philosophy is that Kubiak is getting far more power as an unproven coach than Capers ever received when he became the Texans first coach five years ago with a much more impressive resume than Kubiak. Capers took the expansion Carolina Panthers to the NFC title game in only their second season, and he was a successful NFL defensive coordinator before and after his tenure in Carolina. On the other hand, Kubiak’s sole NFL coaching experience prior to receiving extensive authority under the Texans’ new management approach is that of being the trusty sidekick to the Broncos’ Shanahan, who delegated limited authority to underlings in regard to running the Broncos’ offense.
In light of the foregoing, do you think the Miami Dolphins’ defense — which is now coached by Capers — might be hitting with a little more, might we say, “enthusiasm” when the Dolphins come to town on October 1 to play the Texans?