CBS Corp. continues to play hardball in its legal battle with parent company National Amusements. The AP reports that the company was back in court today seeking the backing of a Delaware judge for a recent move by the board to dilute the voting power of its controlling shareholder.
“In amending a lawsuit filed earlier this month, CBS attorneys asked Chancellor Andre Bouchard to rule that a board vote last week to approve a dividend that would drastically reduce the voting stake of National Amusements Inc. was ‘effective and permissible,'” the AP reports. “The special dividend approved by the board would decrease NAI’s voting stake in CBS from roughly 80 percent to about 20 percent.”
The report notes that the board vote came after National Amusements, led by Shari Redstone, “submitted documents to CBS decreeing that any dividend must be approved by a ‘supermajority’ of its 14-member board, a threshold that was not met.”
“CBS argues that the purported bylaw amendments are invalid and, under federal securities law, were not effective at the time of the special board meeting,” the AP reports.