Bergen Brunswig Tactic to Stop Merger Rejected : Courts: Delaware judge rules against Orange-based drug wholesaler’s efforts to derail competitors’ plans.

A Delaware judge has rejected Bergen Brunswig Corp.’s latest legal move to block the merger of two of its competitors, saying that the Orange-based drug wholesaler had no right to review documentation on the merger agreement.

The court’s ruling late Monday puts a halt to Bergen Brunswig’s monthlong efforts to derail the merger of Durr-Fillauer Medical Inc. in Montgomery, Ala., and Cardinal Distribution Inc. in Dublin, Ohio.

Bergen Brunswig contended that Durr-Fillauer’s board of directors had acted unfairly by refusing to consider Bergen Brunswig’s takeover bid of $26 a share. The refusal constituted a breach of fiduciary responsibilities to the Alabama company’s shareholders, the wholesaler argued.

Bergen Brunswig had hoped that the court would order Durr-Fillauer and Cardinal to divulge the details of their merger agreement so that it could decide whether to sweeten its own offer.

But the court found that permitting a review of the documents could harm the merged company’s ability to compete with Bergen Brunswig and ruled that the company did not have “a proper purpose” in seeing the agreement.

Cardinal chief financial officer David Berman declined to comment on the court decision.

But he said that the merger is on track and that the Securities and Exchange Commission is still reviewing the merger agreement. Shareholders for both companies would likely vote on the merger in early September, and the deal would be finalized in late September, he said.

Durr-Fillauer officials were unavailable for comment.

Bergen Brunswig Vice President Jack Fay said that despite Monday’s court action, his company does not believe its effort to buy out Durr-Fillauer is over.

He said that the company is “pursuing other legal avenues” and will issue a statement detailing what, if any, other strategy the company plans in the near future.

“I don’t think the offer is dead at this point,” Fay said. “What we need to do is review this (court) decision and see what action we can take.”

Bergen Brunswig, angry that it’s 10-year-old standing offer to acquire Durr-Fillauer was thwarted, began sending letters to its board of directors, insisting that they consider an alternative offer.

Under a definitive agreement announced early last month, Cardinal would merge with Durr-Fillauer in a cash and stock deal valued at $450 million. The two companies would create a $2.1-billion firm to compete with Bergen Brunswig, which had $5 billion in revenue last year. Details of the merger have not been divulged.

Bergen Brunswig previously has offered to buy its Alabama rival for about $365 million. Fay said his company, the second largest drug wholesaler in country, is determined to buy Durr-Fillauer so it can expand into the South.

“The principal attraction is the strategic fit with our needs in that area,” Fay said. “It would fill a very nice slot for us.”

Bergen Brunswig stock closed Monday at $18.75, down 25 cents from Monday’s close on the American Stock Exchange.

Cardinal closed up 12 cents at $29.63 a share, while Durr-Fillauer stock closed down 12 cents at $31 a share. Both stocks trade on the National Assn. of Securities Dealers Automated Quotations system.