Police object to DirecTV/Liberty merger
Chris Forrester

John Malone’s Liberty Media is looking to absorb DirecTV, and then spin off the new entity to shareholders. Some existing major shareholders are unhappy, and have filed suit.

The objectors include the Key West Police and Fire Pension Fund in Florida and City of Roseville Employees' Retirement System in Michigan, which filed the lawsuit law week in the Chancery Court in Delaware.

The plaintiffs allege that DirecTV shareholders are overpaying for assets it will get from the entertainment unit. They also said the deal's "unreasonable" $450 million break-up fee, plus up to another $10 million in expenses, would deter other potential bidders.