AC Milan €1.2bn sale stalled in US court as Elliott accused of keeping shareholders in dark

AC Milan

July 19 – A US judge has authorised a minority investor in AC Milan to obtain documents in a legal effort to block the hedge fund Elliott Investment Management LP from completing a €1.2 billion sale of the newly crowned Italian champions.

Last month Elliott agreed to sell to fellow US investment group RedBird Capital, which said it would be retaining the club’s core management – chief executive Ivan Gazidis, chief revenue officer Casper Stylsvig and technical director Paolo Maldini – and that its priority would be to “continue Milan’s journey back to the summit of world football”.

But Blue Skye Financial Partners, which said it owns 4.3% of AC Milan, accused Elliott of violating its rights by engaging in several months of “behind closed doors” talks to clinch a sale of the seven-time European champions.

US District Judge Katherine Polk Failla in Manhattan said Blue Skye had met the legal standard to obtain its requested “limited” number of documents to block the sale or obtain damages.

In a statement, Elliott said it would defend its position against Blue Skye’s “frivolous and vexatious” actions, and that Blue Skye would receive everything it is owed.

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