Sandell Files Complaint Against Southern Union Company (NYSE: SUG) Seeking to Compel Compliance With Delaware Law and Access to Stockholder List

Dec 15, 2006, 00:00 ET from Sandell Asset Management Corp.

    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
     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.