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Sirius XM Sued by Shareholders Over Liberty Buyout Offer

Jan. 15 (Bloomberg) -- Sirius XM Holdings Inc., 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.

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

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