$22 Billion First Data-Fiserv Merger Draws Shareholder Challenge

A First Data Corp. shareholder has asked Delaware’s Chancery Court to block the company’s proposed $22 billion sale to rival payment processing giant Fiserv Inc.

The lawsuit, filed April 3, accuses First Data CEO Frank Bisignano and other top executives of arranging the megamerger on terms that benefit only their private equity backers at KKR & Co. while harming ordinary investors.

KKR, which acquired First Data through a $29 billion leveraged buyout in 2007, stands to make at least $4 billion in long-term profits, Bloomberg reported Jan. 16.

According to the shareholder complaint, the investment firm controlled 86 percent of ...