NACD - National Association of Corporate Directors

CBS Sues Shari Redstone, Its Controlling Shareholder

"CBS issued a corporate declaration of war against its controlling shareholder Shari Redstone on Monday morning," CNNMoney (May 14, Stelter) declares. Redstone has been pushing for CBS Corp. and Viacom, its sister media company, to merge. However, CBS Chief Executive Leslie Moonves and the network's board of directors have reservations about the proposal. On Monday, CBS sued Redstone and her family's holding company, National Amusements (NAI). "CBS wants to hold a special shareholder meeting on Thursday," according to CNN, "and use a dividend declaration to sharply dilute Redstone's control of the company from 79 percent to 17 percent." CBS insists this is allowed by a provision in its charter. Monday's suit says CBS is taking this action in order to prevent Redstone "from abusing NAI's voting control and further harming CBS and its public stockholders in breach of their fiduciary duties."

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