KNDS files lawsuit against Triton over sale of Renk shares, sources say

By Alexander Hübner, Sabine Siebold and Christoph Steitz

MUNICH/BERLIN/FRANKFURT (Reuters) -Franco-German defence firm KNDS has filed a lawsuit against Triton Partners in an attempt to force the private equity group to sell its shares in German tank gearbox maker Renk, sources familiar with the transaction told Reuters on Tuesday.

KNDS earlier this year exercised an option to raise its holding in Renk to 25.1% from 6.7% by purchasing shares from Triton at terms that are now unfavorable for Triton because of a recent surge in Renk's shares.

Shares in Renk have soared by nearly two thirds since KNDS said it exercised its call option on February 10, boosted by a broad surge in European defense stocks in expectation of larger funding, valuing the firm at 5.5 billion euros ($6.1 billion).

KNDS and Triton declined to comment.

The Italian government has yet to give its clearance for the transaction, and KNDS and Triton disagree on whether failure to win that approval on time would mean the deal falls through, the sources said.

Last week two people familiar with the matter told Reuters KNDS's plan to increase its stake was facing a potential challenge from the designated seller of the shares.

The Frankfurt district court confirmed it had received, and rejected, an interim injunction filed by KNDS against Triton aimed at preventing Triton from selling a stake of around 18% in Renk to third parties.

The court, in emailed comments, said that it was correct that KNDS had exercised a call option regarding the stake but that the responsible court chamber had thrown out the case, adding the decision could be appealed within two weeks.

It did not comment on whether KNDS subsequently filed a lawsuit.

($1 = 0.9009 euros)

(Reporting by Alexander Huebner, Sabine Siebold and Christoph Steitz; Writing by Madeline Chambers; Editing by Rachel More and David Evans)