Southern Union Execs Covet Payday In $7.9B Deal: Suit

Law360, New York (June 28, 2011, 5:57 PM EDT) -- Investors in natural gas provider Southern Union Co. filed a class action in Delaware state court Monday, alleging company executives agreed to "lavish perks" and other payments — but shortchanged shareholders — in accepting Energy Transfer Equity LP's $7.9 billion merger bid.

The Southeastern Pennsylvania Transportation Authority and two Florida public worker retirement plans filed a proposed class action against the two companies and Houston-based Southern Union's nine-member board seeking damages and a halt to the merger, announced June 16.

"Instead of inducing competitive bidding among...
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