Sirius Investors Lose Bid To Halt Liberty Media Takeover

Sirius XM Radio shareholders lost a bid to stop Liberty Media officials from seeking to acquire a controlling stake in the satellite-radio provider after a judge denied their request to block further purchases of Sirius shares.

Delaware Chancery Court Judge Leo Strine refused to bar Liberty Media Chairman John C. Malone from adding to his 48 percent Sirius stake despite shareholders’ concerns that the billionaire had started what they called in court papers a “creeping takeover” of the U.S.’s largest satellite broadcaster. The shareholders’ request for an injunction to keep Malone from buying more Sirius shares “is a bit of a stretch,” the judge said at a hearing in Wilmington. “I’m not going to rule by the seat of my pants on this.” Sirius investors sued Malone and other Liberty Media executives who serve as Sirius directors, alleging they are improperly blocking other board members from erecting anti-takeover defenses for the company.