IBM Loses Appeal Dell M&A Case (Bloomberg)

Oct. 24 (Bloomberg) — International Business Machines Corp. lost its appeal of a ruling by a judge who had denied the company’s request to block its former mergers-and-acquisitions chief from performing duties at Dell Inc.

“We have considered all of IBM’s arguments and find them to be without merit,” the three-judge panel of the U.S. Court of Appeals in New York said in its Oct. 22 decision. “Accordingly, the June 26, 2009, order of the district court is affirmed.”

IBM had sought an injunction for the duration of the lawsuit in which it seeks to enforce a one-year non-competition agreement. David L. Johnson, a 27-year IBM veteran, says that agreement isn’t valid because he deliberately signed it in the wrong space.

“We are disappointed in the court of appeals’ decision and are prepared to move forward with proceedings in the District Court to protect IBM from the misuse of our intellectual property and trade secrets,” Doug Shelton, an IBM spokesman, said in an e-mail yesterday.

Dell hired Johnson in May, triggering the lawsuit in which Armonk, New York-based IBM accused him of violating the agreement.

“We’re pleased that the court of appeals has agreed with” the “district court’s conclusion that Dave Johnson is not subject to a non-competition agreement and that there is no reason or justification to keep Dave from working for Dell,” David Frink, a spokesman for the Round Rock, Texas-based company, said in an e-mail.