* Carlyle acquisition of TCW may be in question
* Judge expected to issue final ruling within days-sources
By Jessica Toonkel
NEW YORK, Nov 6 Los Angeles-based asset
manager TCW Group is fighting to squelch efforts to block its
sale to private equity firm The Carlyle Group LP.
On Tuesday, TCW will submit additional evidence to a Los
Angeles judge who is leaning toward granting a request by EIG
Global Energy Partners LLC to block the sale of TCW to Carlyle.
A lawyer representing TCW said it will file its documents on
Tuesday and that EIG will respond on Wednesday.
In August, EIG filed a lawsuit attempting to block the
asset manager TCW's takeover by private equity firm Carlyle
Group LP. Earlier that month, Paris-based
Societe Generale agreed to sell its stake in TCW to
Carlyle and TCW management and employees.
In its lawsuit, EIG, which was spun off by TCW in early
2011, contends the deal with Carlyle, which is expected to close
in the first quarter of 2013, violates certain contractual
rights granted to EIG as part of its separation from TCW.
The dispute involves a joint venture between EIG and
Los-Angeles based TCW that was put in place at the time of the
spin-off. Carlyle has energy funds that compete directly with
EIG's funds. EIG in its contract with TCW has the right to
approve any change of control affecting the joint venture,
according to the lawsuit.
Carlyle's energy funds had $16 billion of assets under
management while EIG had $10.6 billion of assets under
management as of the end of June.
On Monday, Judge Christina Snyder of the U.S. District Court
for the Central District of California handed out the temporary
ruling, according to the source, who declined to be identified
because of the sensitivity of the situation. C ou rt officials
were not immediately available to comment.
Parties typically ask courts to issue injunctions when they
believe they will suffer irreparable harm from the other party's
conduct. Injunctions aim to stop that conduct. Courts will
sometimes issue temporary injunctions if the risk of harm is
substantial, until a hearing can be held to more thoroughly
determine the risks and facts.
Thomas Jerome Nolan, an attorney with Skadden Arps Slate
Meagher and Flom LLP, which is representing TCW, said in an
email to Reuters that if the judge does side with EIG, "she
indicated she would consider suggestions to propose possible
forms on an injunction to narrow its scope if possible."
The judge is expected to issue a final ruling on the
injunction within a few days of the submission, said three
sources familiar with the situation.
An EIG spokesman was not immediately able to comment.
"We look forward to a prompt resolution of these narrow
issues involving EIG through arbitration, and we remain fully
committed to moving forward with the Carlyle transaction in a
timely fashion," TCW spokesman Peter Viles said.