DirecTV, Liberty sued over merger plans

Plaintiffs allege satellite firm's shareholders are overpaying

WILMINGTON, Del. -- Two public pension funds are suing DirecTV Group Inc. and Liberty Media Corp. over plans to merge DirecTV into Liberty's entertainment unit, then spinning them off into a new publicly traded company.

The Key West Police and Fire Pension Fund in Florida and City of Roseville Employees' Retirement System in Michigan filed the lawsuit on Tuesday in the Chancery Court in Delaware.

The plaintiffs allege that DirecTV shareholders are overpaying for assets it will get from the entertainment unit. They also said the deal's "unreasonable" $450 million breakup fee, plus up to another $10 million in expenses, would deter other potential bidders.