ALLEGHENY &lt;AG> PREFERED SHAREHOLDERS FILE SUIT

  Allegheny International Inc, which has
  agreed to a merge with a jointly-formed First Boston Inc
  affiliate in a deal worth 500 mn dlrs, said shareholders of its
  preferred stock have filed a class action complaint against the
  company.
      The complaint alleges, among other things, that the company
  and its board agreed to pay First Boston an illegal seven mln
  dlr topping fee if it received a higher offer for the company
  prior to the buyout.
      The suit contends that this fee hampers Allegheny's ability
  to attract other offers or take other actions that would
  benefit holders of preferred stock. The complaint also alleges
  federal securities laws violations and breach of fiduciary
  duty.
      The suit requests an injunction against proceeding with the
  pending offer being made by Sunter Acquisition to acquire
  Allegheny. Sunter Acquisition Corp and Sunter Holdings Corp
  were formed by First Boston and Allegheny.
      Allegheny said it and the Sunter concerns intend to
  vigorously defend the complaint's charges.
      The complaints were filed by Robert Moss and other parties
  who are believed to own about 230,000 shares of Allegheny's
  preferred stock.
  

