Liberty Media Corp. said Bank of New York Mellon Corp. (BK) is
appealing an April court ruling that found the conglomerate's plan
to shed a host of businesses wouldn't run afoul of agreements with
bondholders.
The split-off of businesses tied to Liberty Capital (LCAPA,
LCAPB) and Liberty Starz (LSTZA, LSTZB) is aimed at allowing
Liberty Media to focus on its profitable QVC network, along with a
group on Internet retail businesses. Liberty Chairman John Malone
has said the move is part of an effort to transform the company
from a passive holder of stakes in various businesses to an active
manager.
The original lawsuit from BNY's corporate trust company, which
represents some holders of Liberty Media's roughly $4.7 billion
debt, argued the complex transaction would transfer assets that
bondholders could claim into the hands of Liberty stockholders.
Still, the plan won approval from a corporate law judge in
April.
Liberty Media is requesting an expedition of the latest appeal
and still hopes to complete the split-off before Sept. 23, the last
trading day on which Liberty can complete the deal under its
current charter.
Shares of Liberty Interactive (LINTA, LINTB) were recently
trading down a penny to $17.56, while shares of Liberty Starz were
off 0.6% to $78.11 and Liberty Capital shares gained 1.1% to
$86.95.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com