Shareholder Sues Hughes to Stop News Corp. Deal
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Hughes Electronics Corp., operator of DirecTV, the top U.S. satellite TV broadcaster, was sued by a shareholder who wants a judge to block a possible takeover by News Corp. and order the company auctioned.
News Corp., headed by Rupert Murdoch, has been in takeover talks with Hughes, a unit of General Motors Corp. EchoStar Communications Corp., the No. 2 U.S. satellite TV service with its Dish TV network, has offered to buy Hughes for about $30 billion.
In a lawsuit filed in Delaware Chancery Court in Wilmington on Monday, Hughes tracking-stock owner Debbie Wurzel contends GM is unfairly favoring a lower News Corp. offer because it would pay cash, while shareholders would be better served by a stock swap with EchoStar that initially offered a premium of 18%.
Hughes officials were not available for comment.
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