WMG Shareholder Files Lawsuit To Block $1.3B Sale
Warner Music Group's board of directors "abandoned their duties" when agreeing to a $1.3 billion sale last week. According to a lawsuit filed by shareholder Barbara A. Varipapa in Delaware's Chancery Court, “The company’s shares are already locked up in favor of the proposed transaction, rendering the minority shareholders’ vote meaningless.”
More than 50% of WMG shareholders have already committed to the sale. But Varipapa believes that the shares were undervalued and seeks to represent other minority shareholders. The case is Varipapa v. Warner Music Group Corp. (WMG), CA6478, Delaware Chancery Court (Wilmington).
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Warner Music has no intention of selling itself – the minority shareholders have to vote against Access Industries’ proposed $1.3 billion acquisition of WMG immediately.