May 17 (Reuters) - Mudrick Capital Management LP on Thursday filed a lawsuit against satellite communications company Globalstar Inc over its proposed merger with FiberLight LLC, stating that the terms of the deal valued at $1.65 billion are "wildly unfair."
Mudrick Capital, which according to Thomson Reuters data is the largest outside investor in Globalstar with a 5.6 percent stake, claims in the lawsuit that funding the merger with Globalstar stock would significantly dilute minority stockholder interest because Globalstar's chief executive officer, James Monroe, is also the majority owner of FiberLight's parent company, Thermo Cos.
Mudrick Capital also said the stock-for-stock merger would lead to a "massive and unjustified transfer of wealth from the Globalstar's public stockholders to Mr. Monroe."
Globalstar declined to comment.
The lawsuit, filed in the Delaware Chancery Court, seeks to give Mudrick Capital the right to inspect Globalstar's books and records.
Globalstar announced the deal on April 25, and Monroe said in a statement that long-term shareholders should benefit significantly from the combination.
Globalstar stock has fallen 5 percent since April 25. (Reporting by Karan Nagarkatti in Bengaluru Editing by Leslie Adler)