Its legal bills mounting, Comtech settles with Gilat, will make $70 million payment to cancel merger

by Peter B. de Selding

PARIS —  Comtech Telecommunications Corp. is paying fellow satellite ground-hardware builder Gilat Satellite Networks $70 million to end the two companies’ merger — a deal that industry officials had hoped would help strengthen the sector.

The settlement agreement was announced on Oct. 5, the first day of a scheduled trial in Delaware Court of Chancery over whether Comtech had acted correctly in unilaterally terminating agreement. Comtech apparently did not like its chances in court.

Comtech had alleged that circumstances special to Gilat had caused . . .

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