Fighting Liberty

8:20 AM -- Liberty Media Corp. (NYSE: LMC)'s plan to fuse DirecTV Group Inc. (NYSE: DTV) with its entertainment division and spin it off has hit its first snag. (See DirecTV to Spin Off, Gain Weight .)

The Associated Press reports that a police and fire pension fund run out of Florida and another retirement group in Michigan are fighting the deal, claiming that DirecTV shareholders are overpaying for the assets.

They also aren't thrilled about the $450 million breakup fee, calling it "unreasonable" and alleging that it frightens off other possible bidders.

Although the satellite TV giant is set to be combined with some of Liberty's entertainment assets, Liberty president and CEO Greg Maffei has not ruled out the possibility that DirecTV could eventually be spun out and sold off to a telco or another suitor. (See DirecTV's 'Possible' Future .)

— Jeff Baumgartner, Site Editor, Cable Digital News

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