Former Vulcan CEO sues Merrill/ Denham
Vulcan Power's former CEO, Stephen Munson "filed suit against investment funds created by Merril Lynch Commodity Partners and Denham Capital Management".
Vulcan Power’s former CEO, Stephen Munson “filed suit against investment funds created by Merril Lynch Commodity Partners and Denham Capital Management”. As a founder of Vulcan Power Co., he served as its president, CEO, Chairman of the board until new directors, appointed by the new investors ousted him from power in October and eventually fired him in late November.
The suit by Mr. Munson claims that – despite the substantial investment of both entities into the company – the parties had agreed on him controlling the Vulcan board of directors and that he would continue as chairman of the board, president and CEO.
Merrill Lynch invested US$ 35 million in Vulcan Power in May 2007. Roughly a year later the Merill Lynch fund, called Valley Energy Investment Fund, invested another US$ 10 million. In early 2008, Denham Capital (equity firm) started negotiations to invest US$ 100 million in Vulcan Power through a new fund, Vulcan Investment Holdings. The company later announced an investment of US$ 145 million from Denham Capital. (source) The suit claims that terms and conditions were added by the investing parties that were not basis of the transaction that Mr. Munson signed.
Source: Register Guard