Zayo Group Hit With Records Suit Over Private Equity Buyout

Zayo Group Holdings Inc. was sued July 26 by a pair of union pension funds seeking corporate records they can use to challenge the communications company’s sale to a private equity consortium.

Shareholders approved the $35-per-share sale, which would turn control of the publicly traded company over to entities affiliated with EQT Fund Management SARL and Digital Colony Partners LP, the same day.

Zayo CEO Daniel Caruso and his management team favored Digital Colony and EQT over other potential suitors because the firms offered them substantial incentives, including equity rollovers and plum roles with the post-merger company, the separate suits ...