NACCO Industries, Inc. said it initiated litigation in the U.S. State of Delaware Chancery Court against Applica Incorporated and affiliates of Harbinger Capital. The NACCO complaint alleges a number of contract and tort claims against the defendants. NACCO is seeking specific performance of a merger agreement between Applica and a NACCO subsidiary, or, alternatively, the payment of monetary damages. NACCO also requested that the court order Harbinger to divest certain shares of Applica.
The suit relates to a merger agreement between NACCO and Applica. NACCO planned to spin off its electric housewares business Hamilton Beach/Proctor-Silex to merge with Applica. The agreement was terminated by Applica in October when Harbinger, already the largest Applica shareholder, announced intentions to purchase all remaining shares.
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