Kennedy Wilson Shareholder Sues to Block $1.65 Billion Buyout

A consortium’s acquisition of Kennedy-Wilson Holdings Inc. for $1.65 billion would violate Delaware law if it’s supported by a bare majority of the real estate investment firm’s unaffiliated stockholders, an investor alleges.

The vote on the buyout should be blocked until the parties to the merger agree to condition it “on the approval of two-thirds of the Company’s disinterested stockholders,” Bruce Taylor says. The parties to the merger should also make “appropriate corresponding disclosures,” he says in a class action complaint filed Friday in Delaware’s Chancery Court.

Kennedy Wilson’s CEO, William McMorrow, other senior executives, and Fairfax Financial Holdings Ltd. ...