On Monday, May 14, CBS filed a lawsuit to stop controlling shareholder Shari Redstone from continuing with her plan to merge it with Viacom saying such a deal would harm its shareholders, reported Reuters.
The New York media company has also asked the Delaware Chancery Court to block Redstone from interfering at a special meeting of its board on Thursday called to consider the merger.
News of the lawsuit sent CBS shares up nearly 3% and Viacom shares down more than 6%. Analysts have said a merger would benefit Viacom more than the stronger CBS.
“Ms. Redstone has acted to undermine the (CBS) management team, including, without board authority, talking to potential CEO replacements, deriding the chief operating officer and threatening to change the board,” the lawsuit said.
Full Content: Bloomberg
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