Sandell Files Complaint Against Southern Union Company (NYSE: SUG) Seeking to Compel Compliance With Delaware Law and Access to Stockholder List
NEW YORK, Dec. 15 /PRNewswire-FirstCall/ -- Sandell Asset Management Corp. announced that Castlerigg Master Investments Ltd., an investment fund affiliated with Sandell, has filed a complaint in the Delaware Court of Chancery against Southern Union Company seeking to compel Southern Union to provide Castlerigg with current stocklist materials in accordance with Delaware law. On December 5, 2006, Castlerigg delivered a demand letter to Southern Union seeking to exercise its right pursuant to Delaware law to inspect certain stocklist materials of Southern Union. On the same day, Castlerigg notified Southern Union of its intention to nominate candidates for director at the company's 2007 Annual Meeting of Stockholders and its intention to solicit proxies in support of such stockholder nominees from other stockholders. On December 11, 2006, Southern Union refused to deliver current stocklist materials, stating instead that it would only deliver at this time a stockholder list prepared nine months ago in advance of the 2006 annual meeting. Castlerigg charges in its complaint that Southern Union's failure to comply with the properly-submitted demand for current stocklist materials violates Castlerigg's rights as a stockholder under Delaware law and deprives Castlerigg of the ability to communicate with other Southern Union stockholders while the incumbent directors and management are able to do so. This complaint is separate from a previous complaint filed on December 5, 2006 by Castlerigg against Southern Union in the same court, in which Castlerigg, among other things, charged that the director nomination provision of Southern Union's bylaws is itself an invalid entrenchment device that purports to strip stockholders of their right under Delaware law to nominate director candidates by providing that candidates must be approved by a hand- picked committee of incumbent directors. About Sandell Asset Management Corp. Sandell Asset Management Corp. is a multi-billion dollar global investment management firm, founded by Thomas E. Sandell, that focuses on global corporate events and restructurings throughout North America, Continental Europe, the United Kingdom, Latin America and the Asia-Pacific theatres. Sandell frequently will take an "active involvement" in facilitating financial or organizational improvements accruing to the benefit of investors.
SOURCE Sandell Asset Management Corp.
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