Pension Fund Challenges PE Firm's $891M Tellabs Buyout

Law360, Chicago (October 23, 2013, 7:21 PM ET) -- A pension fund launched a suit Tuesday to halt Marlin Equity Partners LLC's $891 million buyout of telecom networking company Tellabs Inc., claiming a “hopelessly flawed” process resulted in a deal that lavishes $110 million and other benefits on Tellabs insiders while shortchanging public shareholders.

The complaint, filed in Illinois state court by the City of Lakeland Employees Pension Plan, targets Tellabs' directors for allegedly breaching their duty to shareholders by accepting an inadequate offer from the private equity firm. The pension fund contends the deal...
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