Cisco on Monday moved one step closer to acquiring Starent Network Corp. for a cool $2.9 billion. The deal, which was originally expected to close during the first half of 2010, hit a roadblock when Starent shareholders filed a class action lawsuit to block the acquisition. But that suit was settled yesterday.
Hurdles still remain, however, the first of which requires that the court accept the settlement, at which point the case would be dismissed. But even if that happens (and all indications are that it will), other suits have been filed that could potentially block the acquisition. One such suit includes a case filed by an Illinois stockholder who claims that the acquisition would deprive Starent shareholders of "the opportunity for substantial gains which the compay may realize."