Gilat looks to sue if private equity pulls out

As the credit crunch continues, more and more investors are getting cold feet, having agreed a deal. Israel's Gilat Satellite is yet another example, cited in the Financial Times.

In March a group of private equity investors agreed to take the company into private hands to the tune of US$475 million (€321.1 million). It has not followed the offer up.

Gilat says that unless a deal is struck by Thursday evening in New York, its board will explore the option of suing the investors.

If Gilat opts to go to court, as many other spurned takeover targets have in the past year, it is likely to file a suit in Israel and the US.