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TCW spinout sues over deal with Carlyle
August 21, 2012 / 8:17 PM / 5 years ago

TCW spinout sues over deal with Carlyle

NEW YORK (Reuters) - EIG Global Energy Partners LLC, the investment firm whose dealings with Chesapeake Energy Corp (CHK.N) contributed to the company restructuring its governance, said on Tuesday it had sued TCW Group Inc over its takeover by Carlyle Group LP (CG.O).

EIG, which was spun out of TCW in early 2011, contends the deal with Carlyle, which was announced on August 9 and is expected to close in the first quarter of 2013, violates certain contractual rights granted to EIG as part of its separation from TCW.

“We made these concerns known to all parties involved as soon as we learned of the proposed transaction, but negotiations were unsuccessful, and TCW, Carlyle and Societe Generale elected to proceed with the announced transaction with full knowledge of our concerns,” EIG Chief Executive R. Blair Thomas said in a statement.

    EIG said its complaint, filed in federal court in the Central District of California, seeks to prohibit the transaction until its claims challenging it on various grounds are resolved in arbitration.

    Carlyle declined to comment while a TCW spokesman did not immediately respond to a request for comment.

    Paris-based Societe Generale (SOGN.PA) agreed to sell its stake in asset manager TCW Group Inc to Carlyle and TCW management and employees, clearing up questions over TCW’s ownership following years of speculation about a sale.

    EIG was put in the spotlight in April after Reuters reported on loans that the private equity firm had made to Chesapeake CEO Aubrey McClendon, one of the energy sector’s most high-profile chief executives who subsequently resigned as the company’s chairman but remained CEO. [ID:nL2E8FK97M]

    Reporting by Greg Roumeliotis in New York; Editing by Tim Dobbyn

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