EXCLUSIVE: Larry King’s Mistress “Spitting Mad” He’s Reunited With Wife Shawn; May Sue Talk Show Icon

Larry King’s sister-in-law, Shannon Engemann, is described as being “devastated and furious” that the talk show icon has called off his divorce from her older sister and seventh wife Shawn Southwick, RadarOnline.com is exclusively reporting.

In a new twist to King’s bizarre love-triangle, RadarOnline.com has learned that Shannon has even taken legal advice about suing multi-millionaire King for ‘breach of promise’ after he made several assurances to her about their future as a couple.

“It’s absolutely false that I intend to sue Larry King.  It’s totally untrue,” a lawyer for Engemann told RadarOnline.com.

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But now, Shannon’s dreams of a life with her famous brother-in-law are in tatters as he has moved back into the family’s Beverly Hills mansion.

The feuding husband and wife have vowed to patch-up their troubled 13-year-marriage for the sake of their two sons Chase, 11, and Cannon, 9.

PHOTO: Larry King & Shawn Southwick Hold Hands In Beverly Hills

A source close to Shannon exclusively told RadarOnline.com: “Shannon is absolutely furious. She feels betrayed by Larry.

“She claims that he made her all these promises about their future about them getting married and being together and now he is back with Shawn.

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“Shannon is fighting mad she’s threatening to sue him for breach of promise if he does not come through. She’s called-out to her lawyers and they have had chats to see if anything can be done.

“Larry has been supporting Shannon for a couple of years now providing her with money and cars, and she honestly thought she was going to be the next Mrs. Larry King.

PHOTO: Larry King & Shawn Southwick Hold Hands In Beverly Hills

“Shannon feels that Shawn is holding the boys and Larry’s love for them over his head. Anyways, it goes Shannon is spitting mad and plans to make waves.”

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Larry and Shawn put on a brave face for the cameras Wednesday after they were snapped leaving their Beverly Hills mansion walking hand-in-hand by the waiting paparazzi.

As RadarOnline.com previously reported, King has moved back into the couple’s home earlier this week, and they’ve called off their plans to divorce after accusing each other of extra-marital affairs: King with Shawn’s own kid sister and Shawn with their son’s hunky 31-year-old baseball instructor Hector Penate.

PHOTOS: Larry King Back At Home Wednesday

King, 76, and Southwick, 50, married in 1997. Amazingly the American television giant has been married eight times to seven women. He married his third wife twice.

But any plans of a smooth re-union with his current wife could be torpedoed by Shannon who totally feels like ‘a woman spurned’ right now.

PHOTOS: Larry King And Shawn Southwick King Kissing In Public

At one time, King and his sister-in-law even talked about having a baby as the couple had a relationship that over-lapped Shawn’s affair with Penate.

King’s ex-wife Julia Alexander King told RadarOnline.com that the couple knew about each other’s infidelities.

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“Larry told me they both knew that each of them had others in their lives,” Alexander King told RadarOnline.com exclusively. She has stayed in touch with Larry since their divorce and has spoken to him since the breakup.

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And now that Larry is back with Shawn her sister is desperately worried about her own future.

The source added: “Larry made her a lot of promises and now Shannon’s been left ‘holding the bag’.

EXCLUSIVE: Larry King & Wife’s Sister Talked About Having A Baby

“She’s really worried about how she is going to make it because Larry has been financially supporting her and Shawn has demanded that her husband stop’s doing this.

“To make matters worse Shannon feels like she has burnt bridges with other family members because of the choices that she has made.

EXCLUSIVE: Larry King And Wife Reunited For The Kids

“But the family are willing to forgive her although she has been told it would be a big mistake if she was to take legal action against Larry by suing him for ‘breach of contract’

“However, Shawn is so mad right now she is intent on getting what she feels is due her.”

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