Focus Media Investor Sues Over $3.7B Carlyle-Led Buyout

Law360, New York (February 26, 2013, 6:37 PM EST) -- A pension fund took aim at Focus Media Holdings Ltd.'s proposed $3.7 billion go-private deal on Friday, claiming the Chinese digital advertising agency's CEO pushed through a lowballed buyout offer led by Carlyle Group LP to secure his personal fortune at shareholders' expense.

Iron Workers Mid-South Pension Fund fired off the suit in California federal court alleging the proposed cash acquisition by a group of private equity firms undervalues the company and resulted from an uncompetitive sale process that shut out other potential suitors.

“Seizing the...
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