The board of Virgin Media are being sued over the company’s $23.3 billion sale to Liberty Global.
Virgin’s directors have been accused of breaching their “fiduciary duties” because they allegedly accepted Liberty’s bid without seeking higher offers elsewhere. Investor Jeff Grimsley has filed a complaint in a Manhattan court that the “unfair process” was meant to discourage other potential buyers.
The company struck a deal to sell to US cable giant Liberty for $47 a share – delivering windfalls for around 4,000 Virgin staff. Berkett is set to take around $65 million from the deal, while Richard Branson will receive around $316 million for close to 3 per cent of the TV group.
Although the lawsuit is thought unlikely to derail the deal, it could cause a lengthy delay.
Virgin has thus far declined to comment.