Corp. for allegedly misusing confidential information to aid Western Resources Inc.'s hostile bid for the security-services company, a state judge ruled.

New York State Supreme Court Judge Herman Cahn said Bermuda-based ADT may sue its lender on two out of seven claims.

In dismissing five counts, Judge Cahn said Chase's agreement to finance the hostile takeover of one corporate customer by another didn't violate its fiduciary duties.

ADT claims the nation's biggest bank broke a confidentiality agreement it signed as co-manager of a $500 million loan to ADT, and should be barred from financing Western's $3.5 billion bid.

"Any breach which directly assists Western or gives it an unfair advantage in its takeover efforts are actionable,'' Judge Cahn wrote in the ruling.

The decision is a boost for ADT and its preferred acquirer, Tyco International Ltd.

Shareholders of ADT and Tyco are scheduled to vote next Wednesday on Tyco's friendly $6 billion, all-stock bid. Western, which already owns 27 percent of ADT's shares, has extended its hostile offer to July 8.

Judge Cahn said ADT already is compiling information and documents for a preliminary injunction barring Chase from aiding the Topeka, Kansas-based power company's bid.

"We did not misuse confidential information. There's nothing that suggests that,'' said John Stefans, a Chase spokesman.

ADT, which also is seeking $50 million in punitive damages from Western, said it's pleased with the decision.

ADT rejected Western's bid in early March, and agreed to be purchased by Exeter, New Hampshire-based Tyco about two weeks later.

ADT's suit against Chase claims the New York-based bank met with ADT's executives and was privy to confidential information about the company's strategy and operations.

Confidential information ADT gave to Chase is the "linchpin to (Western's) takeover's success,'' the suit said.