Anixter-WESCO Merger Hit With Lawsuit

The $4.5 billion deal to combine security-products distributor Anixter with rival WESCO has hit a snag.

According to law360.com, an Anixter shareholder has filed a lawsuit in a Delaware federal court. The shareholder, Sheva Stein, claims that investors have been misled about the transaction, according to the website, and she seeks to delay, if not stop, the transaction until more information is provided to shareholders.

It isn’t known what if any effect the lawsuit will have on the transaction, announced in January 2020.

The deal was the result of a drawn-out bidding war for Anixter between WESCO and private-equity firm Clayton, Dubilier & Rice. The transaction is expected to be complete during the second or third quarter of 2020.