Pimco Sued Over Sale Plans

Pimco Advisors Holdings LP, the No. 1 U.S. bond fund manager, has been sued by owners of limited partnership units who contend they’ll be shortchanged if a planned $3.3-billion takeover by Europe’s second-largest insurer, Allianz AG, goes through.

Newport Beach-based Pimco said Sunday that Munich-based Allianz wants to buy 70% of the company for $38.75 per unit--a 12% premium over the Friday closing price.

In one of five lawsuits filed in Delaware Chancery Court in Wilmington this week, Doris Tarnoff, who owns an unspecified number of the units, says Pimco directors are selling control of the company for an unfair price and have conflicts of interest.

“As part of the cash-out, Allianz AG has offered key [Pimco executives] profit-sharing and retention bonuses,” Tarnoff says in the suit. She asks a judge to halt the transaction and award damages and legal fees.

Pacific Life Insurance Co., which spun off Pimco in 1994, will keep the other 30% of the company.

Pimco officials could not be reached for comment.

The company’s stock was unchanged at $37.38 a share on the New York Stock Exchange.