Sunday, 21 December 2014
Last updated 1 day ago
Dec 29 2009 | 10:18am ET
A one-time rival bidder for an appliance company has accused Harbinger Capital Partners of using non-public information to derail its acquisition efforts.
Nacco Industries, which sells appliances under the Hamilton Beach brand, sued the New York-based activist hedge fund and Applica Inc., the company it sought to acquire, alleging breach of contract. According to Nacco—which failed in a similar suit in Ohio federal court in 2006—Applica executives passed non-public information to a Harbinger consultant, who now works for the hedge fund.
Among the non-public information alleged passed to David Maura was the fact of a 2006 deal between Nacco and Applica, which the company accuses the hedge fund of using to build up its stake in Applica, which sells appliances under the Black & Decker brand.
Harbinger itself wound up buying Applica and merging it with yet another appliance company, Salton Inc., which sold appliances under the Westinghouse brand.
Maura, Applica and Harbinger all deny any wrongdoing.
In a statement, the hedge fund called the lawsuit “a continuing effort by a disgruntled buyer to salvage something from its failed effort to buy Applica.” Harbinger founder Philip Falcone added, in his own statement, “with 20/20 hindsight, I wouldn’t do one thing differently.”
But while the Delaware Chancery Court found that there were “potentially legitimate” explanations for the communication between Harbinger and Maura, Vice Chancellor J. Travis Laster ruled in favor of Nacco, allowing its lawsuit to move forward.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.