Virgin Media Inc. and investors agreed to settle lawsuits over the company’s $16 billion sale to Liberty Global Plc completed last month.
Liberty Global, controlled by billionaire John Malone, agreed in February to buy Virgin Media for cash and stock in the biggest media deal since the merger that created Thomson Reuters Corp.
Shareholders sued New York-based Virgin Media in state Supreme Court in Manhattan in February seeking to stop the sale. Lawyers for both sides engaged in “extensive arms-length negotiations” and reached an agreement in principle to settle the suits in May, according to a court filing dated today.
As a result of the settlement, which needs court approval, London-based Liberty Global and Virgin Media agreed to modifications of terms of the transaction, including a reduction of a termination fee to $370 million from $470 million, which was reported in a filing with the U.S. Securities and Exchange Commission in May, according to the court document.
The case is In Re Virgin Media Inc. Shareholders Litigation, 650537/2013, New York State Supreme Court, New York County (Manhattan).