WSJ – An aggrieved suitor in a 2006 bid to buy an appliance firm alleges that Harbinger Capital Partners, a prominent hedge fund that won the takeover battle, received nonpublic information about the rival bid and accumulated a big stake before the deal talks were made public, according to documents cited in a preliminary ruling in the Delaware Chancery Court.
In a lawsuit alleging breach of contract and other claims related to its failed bid, Nacco Industries Inc. alleges that executives of takeover target Applica Inc. passed tips through a consultant working for Harbinger, a New York hedge fund run by Philip Falcone. Nacco sells Hamilton Beach-brand appliances.
