LONDON (Reuters) - America's biggest union federation has called on U.S. regulators to halt Blackstone's $40 billion initial public offering, claiming the private equity group evades governance standards, the Financial Times reported on Wednesday.þþThe paper, citing a letter sent by AFL-CIO, the 10 million strong labor group, said the union had written to the Securities Exchange Commission arguing that Blackstone's (BG.UL) IPO falls foul of U.S. laws and should be investigated.þþThe union says that the unique structure chosen by Blackstone's senior executives to raise funds from stock markets while keeping a tight grip on the running of its business is an attempt ``to evade the coverage'' of the Investment Company Act of 1940.þþIn its March prospectus, Blackstone said its listed entity was a partnership exempt from the governance requirements of investment companies such as having a fiduciary duty to stock market investors and keeping a majority of independent directors on the board.þþDoug Lowenstein, head of the newly-created Private Equity Council lobby group, makes a first appearance on Capitol Hill on Wednesday to defend the industry against unions and other critics who say it destroys jobs while using its generous tax status to enrich a small group of executives.þþ
Source: NY Times
