A Delaware Chancery Court judge granted a temporary restraining order against National Amusements Inc. on Wednesday as he prepares to deliver a ruling on its dispute with CBS.
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Chancellor Andre Bouchard promised to issue a ruling before a special meeting of the CBS board, which is set for Thursday afternoon.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| CBS | CBS CORP. | 53.83 | -0.59 | -1.08% |
| VIA | VIACOM INC. | 33.85 | -1.05 | -3.01% |
Shari Redstone’s National Amusements, which is the controlling shareholder, is seeking to block CBS’s attempt to dilute the holding company’s voting power by changing the broadcaster’s bylaws.
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CBS sued National Amusements earlier this week after a contentious round of negotiations in which Redstone was pushing for a merger of CBS with the other media company her family controls, the ailing Viacom unit of National Amusements. Before the ruling, CBS defended its legal move in a statement to FOX Business.
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“The latest step by NAI provides further evidence of why we concluded that we had no choice but to file our action in the Delaware courts, in order to protect the interests of all CBS shareholders. We believe the NAI action is unlawful, and we are confident in our position and look forward to presenting our case in court” said a CBS spokesperson.
FOX Business reported Tuesday that Les Moonves, the CEO of CBS, has acknowledged to insiders at the company that his battle with Redstone could end with its sale to another player in the rapidly evolving media business.
Moonves has balked over price and Redstone’s management demands. In recent years, Shari has assumed a more public role for the companies her family controls after her father Sumner suffered from health issues and a messy, public legal battle over money with former girlfiends and caretakers.
CBS hadn’t responded to a request for comment from FOX Business at the time of publication. National Amusements declined to comment.
