Deals
Mudrick Capital Sues Globalstar Over ‘Self-Dealing’ Merger
- Lawsuit seeks to force satellite company to open up its books
- Case cites Globalstar chief’s multiple roles, share dilution
Photographer: Michael Nagle/Bloomberg
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Mudrick Capital Management sued Globalstar Inc. over its planned merger with another firm controlled by Chief Executive Officer James Monroe III, claiming the combination amounts to “self dealing."
Plans call for Globalstar, the satellite communications company where Monroe is also chairman, to be combined with FiberLight LLC and other assets in a deal valued at $1.65 billion. Mudrick’s lawsuit filed in Delaware Chancery Court on Thursday claims that the terms are unfair, and says Monroe will benefit based on his roles at the two companies and other affiliates that are contributing cash and assets to the new business.