MSN Money – A hedge fund that is agitating for leadership change at Bally Total Fitness Holding Corp. said Thursday that a Delaware court has denied a motion by the health club operator to speed upthe legal process that would trigger its antitakeover provision.<\/p>\n
The hedge fund, collectively known as Liberation Investments, said the court denied a motion by Bally for expedited discovery in its action seeking to determine that Bally’s “poison pill” was triggered. A poison pill is a strategy used by companies to thwart a hostile takeover attempt by another party, by making it more expensive.<\/p>\n
The court’s decision deals a legal setback to Bally, which has accused Liberation and another fund, Pardus Capital Management, of conspiring to take over the gym operator, which has put itself up for sale.<\/p>\n
The two hedge funds have each bought large stakes in Bally, and have called for the ouster of Bally’s chief executive, Paul Toback, and other changes in corporate governance.<\/p>\n