Telemundo Holders Sue to Stop Sale
Telemundo Group Inc. shareholders filed suit Tuesday to block the company’s sale to a group including Sony Corp., Liberty Media Group and investor Leon Black for $539 million.
At least four shareholders asked Delaware Chancery Court to find that Telemundo’s executives are shortchanging shareholders by accepting the offer. Telemundo is a Spanish-language television network operating in the U.S.
Black’s Apollo Management and Bastion Capital Fund, the largest Latino-owned private equity fund, own about 35% of Telemundo and last week the group offered to buy the rest. The $44-a-share offer is 12% more than Friday’s closing price.
Hialeah, Fla.-based Telemundo reaches 85% of all Latino households in the U.S. The company owns eight TV stations in markets such as New York, Chicago, Los Angeles and Puerto Rico. It has about 80 affiliates in the U.S.
Telemundo shares fell 6 cents to close at $41.38 on Nasdaq.