Mellon Seeks Injunction to Block Bid

Mellon Bank Corp. sought an injunction to block Bank of New York Co.’s $22.9-billion unsolicited takeover bid, alleging that the company used inside information gained from failed merger negotiations. Mellon, in papers filed in U.S. District Court in Pittsburgh, where it is based, said Bank of New York “misappropriated confidential and nonpublic information” gathered during merger talks with Mellon that broke down in December. It asked the court to block Bank of New York from buying Mellon shares. Bank of New York on Wednesday offered 1.4 of its shares for each Mellon share, worth $86.89 at Wednesday’s closing price. Mellon Chairman Frank Cahouet rejected the bid. Bank of New York repeated its desire for a friendly transaction and called the suit “groundless.” On the New York Stock Exchange, Mellon shares fell $2.13 to close at $75.88; Bank of New York shares fell $1.50 to close at $60.56.