Virgin Media Board Sued Over Liberty Global SaleDavid McLaughlin
Virgin Media Inc.’s board and Chief Executive Officer Neil Berkett were sued by a shareholder over the company’s $16 billion sale to Liberty Global Inc.
Virgin Media, Britain’s second-largest pay-television provider, is being sold through an “unfair process and for unfair price,” shareholder Jeff Grimsley said in a complaint filed yesterday in New York State Supreme Court in Manhattan.
“Given Virgin Media’s recent strong performance as well as its future growth prospects, the consideration shareholders will receive is inadequate and undervalues the company,” according to the complaint.
John Malone’s Liberty Global, based in Englewood, Colorado, agreed to acquire New York-based Virgin Media in a cash-and-stock transaction announced this month to challenge Rupert Murdoch in Europe’s biggest pay-TV market.
Hanne Wolf, a spokeswoman for Liberty Global, didn’t immediately return a phone call seeking comment on the complaint. Virgin Media officials didn’t immediately respond to an e-mail.
The case is Grimsley v. Berkett, 650469-2013, New York State Supreme Court, New York County (Manhattan).