Bug Music CEO Tries To Block $300M BMG Merger

Law360, Wilmington (September 30, 2011, 6:29 PM EDT) -- The CEO of Bug Music Inc. sued the music publisher’s private equity owners in Delaware state court Thursday, seeking to block the $300 million sale of the company to BMG Rights Management LLC and claiming the deal unfairly stiffed common stockholders.

Two funds associated with Spectrum Equity Investors LP, which hold over 90 percent of Bug Music’s stock, crafted the deal to ensure a big payday for preferred stockholders like Spectrum and the three directors it placed on the company’s board, while ensuring that common shareholders...
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