Business News | July 2006
|Univision Music Unit Sued by Mexico's Disa Label|
atin music label Disa Records said on Tuesday it has filed a breach of contract lawsuit against the music unit of Hispanic media company Univision Communications Inc.
|Univision last month agreed to a $12.3 billion buyout by a group of private equity firms and media investor Haim Saban.|
Mexico's Disa Records said it filed suit in U.S. District Court, Central District of California.
Disa's lawsuit claims Univision has employed "heavy-handed legal tactics" to obstruct a 5-year-old agreement under which it said Univision is obliged to purchase the half of Disa Records that it doesn't already own.
A Univision spokeswoman was not immediately available for comment.
Univision bought 50 percent of Disa from its founders, the Chavez family of Monterey, Mexico in 2001. Together with its Univision Records and Fonovisa Records labels, Univision controls the largest Latin music company in the United States.
The Chavez family continues to manage the label and said in its lawsuit that it seeks the value of the transaction that Univision pledged to complete.
It claimed that Univision sought to change a non-compete provision of their agreement as a condition for moving forward on the Disa purchase.
Univision last month agreed to a $12.3 billion buyout by a group of private equity firms and media investor Haim Saban.
Shares of the company rose 11 cents to $33.45 on the New York Stock Exchange late Tuesday afternoon.