CBS Sues Chief Shareholder in Delaware's Chancery Court - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

CBS Sues Chief Shareholder in Delaware's Chancery Court

Posted: May 15, 2018 8:27 PM Updated:
(Photo: MGN Online) (Photo: MGN Online)

WILMINGTON, Del.- CBS Corporation on Monday announced a lawsuit against National Amusements, accusing its majority shareholder of violating its fiduciary duty to investors by pushing for a merger with Viacom.

The lawsuit, filed in the Delaware Court of Chancery, seeks a temporary restraining order to prevent National Amusements' president and controlling shareholder, Shari Redstone, from interfering with a planned meeting this week by CBS' board of directors. A hearing is set for 2 p.m. on Wednesday in Wilmington.

According to the lawsuit, the meeting will be used to consider whether or not to issue a special dividend to stockholders that would dilute National Amusement's voting shares in CBS from nearly 80 percent to only 17 percent.

Redstone has said she seeks to merge CBS and Viacom. CBS said in its lawsuit that it does not believe the merger would be in the best interest of the company. 

National Amusements said it is "outraged" by the suit and denied it wants to force a CBS-Viacom deal on shareholders that does not have support from both companies. 

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