Iron Workers of Western Pennsylvania Pension Plan, Pittsburgh, and Pirate Capital's Jolly Roger Fund are asking a court to block the proposed sale of Toys "R" Us, Wayne, N.J., said Randall Baron, an attorney representing the plaintiffs. Mr. Baron, a partner in the San Diego office of Lerach Coughlin Stoia Geller Rudman & Robbins, said the $100 million pension fund and the private equity fund will make their request to the Delaware Court of Chancery on Friday because Toys "R" Us officials "haven't undertaken their responsibility to maximize shareholder value." The plaintiffs initially filed their complaint in May against the toy company's board of directors and the bidding group and they are seeking class-action status. The number of Toys "R" Us shares owned by the pension plan and the private equity fund was not available.
Toys "R" Us officials in March agreed to sell the company to an investment group comprising affiliates of Bain Capital Partners, Kohlberg Kravis Roberts and Vornado Realty Trust for $6.6 billion plus the assumption of debt. Toys "R" Us shareholders are slated to vote on the sale agreement June 23.
Toys "R" Us officials were unavailable for comment by press time. Bain Capital spokesman Sam Hollander said the firm doesn't comment on pending litigation. Officials at Vornado Realty Trust and KKR could not comment by press time.