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Business Associations Keyed to Bainbridge
Broz v. Cellular Information Systems, Inc.
Citation:
673 A.2d 148 (1996)Facts
RFB Cellular owns and operates an Federal Communications Commission license area, known as the Michigan-4 Rural Service Area Cellular License. The license entitles RFBC to provide cellular telephone service to a portion of rural Michigan. In April 1994, Marckinac Cellular Corp. sought to divest itself of Michigan-2. Mackinac contacted Daniels & Associates. Michigan-2 was not, however, offered to CIS. Apparently, Daniels did not consider CIS to be a viable purchaser. Following a meeting of the CIS board, Broz spoke with CIS’ Chief Executive Officer, Richard Treibick, concerning his interest in acquiring Michigan-2. Treibick communicated to Broz that CIS was not interested in Michigan-2. On June 1994, six CIS directors entered into agreements with PriCellular to sell their shares in CIS at a price of $2 per share. On August 1994, Broz submitted offers to Mackinac for the purchase of Michigan-2. In September 1994, PriCellular reached agreement with Mackinac on an option to purchase Michigan-2. ON November 14, 1994, Broz agreed to pay Mackinac for the Michigan-2 license. An asset purchase agreement was thereafter executed by Mackinac and RFBC. Nine days later, PriCellular closed its offer for CIS.
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