EXCLUSIVE: HART INTERCIVIC ATTEMPTS HOSTILE TAKEOVER OF SEQUOIA VOTING SYSTEMS

[BradBlog]

Cross-posting here, in case the following gets buried at LBN: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3263333


EXCLUSIVE: HART INTERCIVIC ATTEMPTS HOSTILE TAKEOVER OF SEQUOIA VOTING SYSTEMS
Desperate to Stop the Deal, Sequoia's Owners Frantically Seek Funding, Legal Options, All of Which Have so Far Failed Enough to Lead the Judge Working on the Case Regarded One Such Legal Argument as a 'Conspiracy Theory'
Merger of Two Companies Would Likely Create New E-Voting Powerhouse, Face Federal Scrutiny, Come as Surprise to Sequoia's Current Clients...

-- Brad Friedman

As if Sequoia Voting Systems doesn't have enough trouble already, the company now needs some $2 million dollars in cash...quickly. Without it, they are likely to be subsumed by one of their nearest competitors, Hart InterCivic of Austin, TX, as soon as next Tuesday, The BRAD BLOG has learned.

In what could well be a major shift on the American election industry landscape --- and certainly on elections themselves in dozens of states across the country --- voting machine company Hart InterCivic informed the current owners of the beleaguered Sequoia of their intention to acquire ownership of the company in a move which could take effect as early as next week.

The attempted hostile takeover --- which, we've learned, has been quietly in the works behind the scenes since mid-February --- has set off a building panic among the senior management and owners at Sequoia, whose money woes had already led them to schedule a shut down of their Oakland headquarters. That shop is to close within a matter of months, as the operations for the company are to be consolidated at their Denver offices.

Court documents obtained by The BRAD BLOG reveal that Hart notified SVS of their intention to purchase the $2 million note held by Smartmatic on February 15th, giving the group of owners and share holders of SVS --- including CEO and President Jack Blaine, and VPs Michelle Shafer and Edwin Smith (whose names BRAD BLOG readers may recognize) --- just 60 days to match the offer Hart had given to Smartmatic. As the deadline nears, Due Dilligence processes have begun, and are near the final phases of completion at Sequoia...whether company management likes it or not.

Every legal effort by Sequoia and SVS to dispatch with the hostile takeover attempt has failed miserably so far, leading Vice Chancellor Stephen P. Lamb of the Court of Chancery in Delaware to even describe one such legal theory of SVS' as...(major irony alert!)...a "conspiracy theory"!...

COMPLETE EXCLUSIVE INVESTIGATIVE REPORT, DOCUMENTS:
http://www.bradblog.com/?p=5885

Condensed summary version also published at ComputerWorld:
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9076758

[WillYourVoteBCounted]

1. Hart Intercivic has embedded themselves in many local govts

they have other services they offer govts that could help them
peddle more of their wares.

Catawba Co NC had switched from optical scan to Hart DRES back in 2002 or 2003,
and their undervotes went through the roof!

[Melissa G]

2. John Gideon's comment on this development in today's Daily Voting News

Today it was revealed that a “little fish” may devour a “bigger fish” as
Hart Intercivic attempts a hostile takeover of Sequoia Voting systems.
Will the Sequoia principals be able to scrape up enough money to stop
Hart? Time will tell. &&& One of the often overlooked mandates in HAVA
is an accuracy requirement. Recent problems with Sequoia Advantage
machines in New Jersey and Diebold/Premier TSx DREs in Butler Co Ohio
violate that mandate (federal law). And, they don’t just barely violate
the law but they destroy it. In the case of Sequoia the error rate is
more than 600 times as high (or 60,000%) as the maximum error rate
allowable under by federal law. In Ohio the Diebold/Premier machines the
error rate is between 400 to 900 times (40,000% to 90,000%) the rate
allowed by federal law.

http://www.votersunite.org/article.asp?id=7631

[kster]

3. K&R...nt