Shareholder Sues Hughes to Stop News Corp. Deal

Hughes Electronics Corp., operator of DirecTV, the top U.S. satellite TV broadcaster, was sued by a shareholder who wants a judge to block a possible takeover by News Corp. and order the company auctioned.

News Corp., headed by Rupert Murdoch, has been in takeover talks with Hughes, a unit of General Motors Corp. EchoStar Communications Corp., the No. 2 U.S. satellite TV service with its Dish TV network, has offered to buy Hughes for about $30 billion.

In a lawsuit filed in Delaware Chancery Court in Wilmington on Monday, Hughes tracking-stock owner Debbie Wurzel contends GM is unfairly favoring a lower News Corp. offer because it would pay cash, while shareholders would be better served by a stock swap with EchoStar that initially offered a premium of 18%.

Hughes officials were not available for comment.