Ohio district court judge Solomon Oliver has put a July 7 expiration date on American Greetings' temporary restraining order that has so far blocked the $87.6 million sale of DIC Ent. to Cookie Jar that was announced on June 20, according to KIDSCREEN DAILY.
The expiration should free any obstacles to the planned July 21 merger, which is subject to stockholder approval.
However, Oliver also set a preliminary injunction hearing date, based on American Greetings' action, for July 24 and 25.
American Greetings claims that the proposed merger is a breach of the licensing agreement it has with DIC over the STRAWBERRY SHORTCAKE brand.
The July 24 hearing would allow the judge to decide whether the merger is indeed a breach of contract.
DIC reassured its shareholders Wednesday in a statement via C21MEDIA: "DIC and its board of directors remain fully committed to pursuing the merger with Cookie Jar and intend to continue to pursue all appropriate legal options available to it."
"The TRO will expire at 11.59 p.m. on July 7, 2008. As such, the TRO, if it was in fact applicable to the merger, will no longer be an impediment to the merger, and DIC and Cookie Jar shall be free to consummate the merger, subject to receiving requisite stockholder approval from the DIC stockholders on July 21, 2008."