By OGJ editors
HOUSTON, Jan. 26 -- Holly Corp., Dallas, announced that the trial between itself and Frontier Oil Corp. has been rescheduled to begin on Feb. 23 in the Delaware Chancery Court.
The trial is expected to last 2 weeks. Start of the trial was postponed from Jan. 12 after Holly's attorneys delivered to Frontier's attorneys certain documents in early January that were intended to have been delivered months earlier (OGJ Online, Jan. 6, 2004).
The trial involves a lawsuit that Frontier filed against Holly, alleging that Holly breached a contract by trying to amend the terms of a $450 million merger agreement (OGJ Online, Aug. 26, 2003).
Holly and Frontier agreed to a transaction involving cash and stock (OGJ, Apr. 14, 2003, p. 34). But Holly later requested an all-cash transaction because of concerns about Frontier's financial exposure regarding about environmental lawsuits in California.
In court documents, Frontier said the value of the proposed deal would have stayed the same. The original terms called for Holly stockholders to receive one share of Frontier common stock for each outstanding share of Holly common stock, plus a $172.5 million cash payment.
