Sirius XM Sued by Shareholders Over Liberty Buyout Offer

Sirius XM Holdings Inc. (SIRI), a satellite-radio operator, was sued by two shareholders who contend directors violated their duties to get the best price in a buyout by parent Liberty Media Corp. (LMCA)

Liberty, which owns more than half of New York-based Sirius, on Jan. 3 offered the equivalent of $3.54 a share in stock for the remainder, even as Sirius trades at more than $3.60, according to a Delaware Chancery Court complaint made public today.

“The lack of a premium is even worse considering the company’s recent financial success and tremendous growth prospects,” investors Philip Ricciardi and Scott Ozaki contend, citing increases in earnings and subscribers.

The investors asked a judge to block the buyout until directors adopt a sales process “to secure the best possible consideration” for Sirius shareholders.

Courtnee Ulrich, a spokeswoman for Englewood, Colorado-based Liberty, didn’t immediately return a phone call seeking comment on the lawsuit.

The case is Ricciardi v. Sirius XM, CA9253, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.