By RTT News,
February 14, 2014, 10:38:00 PM EDT
(RTTNews.com) - A Time Warner Cable Inc. ( TWC ) shareholder sued to block the proposed $45.2 billion acquisition by Comcast (CMCSA), saying the merger faces high regulatory hurdles and was the result of unfair dealing, according to a report by Bloomberg.
Investor Breffni Barrett, in a complaint filed today in New York State Supreme Court in Manhattan, said he wanted to stop the "sale of the company at an unfair price through an unfair and self-serving process to Comcast."
Barrett also said, "Since rumors first leaked in mid-2013 about several companies interested in acquiring Time Warner, it has been reported that Time Warner failed to engage in good faith negotiations," The lawyers felt the sales process was deficient and the bid failed to take into account the company's "positive momentum going forward,"
Barrett alleged that Time Warner Cable's management would receive "immediate benefits from the closing of the transaction," including over $60 million in special payments.
"Given Comcast's dominance in the cable industry, Time Warner's merger with Comcast raises antitrust issues that another potential acquirer, like Charter for example, may not have faced," Barrett said.
On Thursday, Comcast agreed to acquire Time Warner Cable for $45.2 billion in an all-stock deal. Each Time Warner Cable share will be exchanged for 2.875 shares of CMCSA, equal to Time Warner Cable shareholders owning about 23 percent of Comcast's common stock.
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