|
 National Amusements Inc, through which the 93-year-old media mogul
owns 80 percent of Viacom, said in a statement that Paramount was
"one of Viacom’s most valuable assets" and a stake sale "would chill
the interest of parties that may be interested in a larger
transaction involving all of Viacom."
Redstone also owns 80 percent of the voting shares of CBS Corp
through National Amusements. Viacom split off from CBS in 2006, but
many investors have said they hope the two will merge again.
CBS Chief Executive Les Moonves, whom some expect would be tapped to
head the combined company if that merger were to happen, is said to
be interested in owning a movie studio, according to sources
familiar with the situation. CBS declined to comment.
A Viacom spokesman said it was "beyond understanding" that National
Amusements would continue to interfere with a potential Paramount
deal that would create a long-term value "without even waiting for
the facts."
The statement comes two days after Reuters was first to report that
Dalian Wanda Group is interested in buying the Paramount stake.
Wanda's interest adds urgency to deliberations over Paramount's
future, which has become the flashpoint of a bitter feud between
Viacom Chief Executive Philippe Dauman and Redstone, the company's
controlling shareholder. Redstone has so far opposed the sale, which
is not possible without his consent.
Last month, National Amusements moved to replace Dauman and four
other directors on Viacom's board, an action that is being contested
in a Delaware court.
In its statement Friday, National Amusements said that the five
directors it has elected to replace the sitting ones should be able
to review the proposed transaction. Under an order by that court,
Viacom would have to give National Amusements five days notice
before entering into a deal for Paramount.
[to top of second column] |
"If the new board decides to pursue a sale of a minority stake in Paramount as
part of a larger strategic plan for Viacom, we are confident that a buyer could
then be identified and a sale consummated," National Amusements said.
In June, National Amusements changed Viacom's bylaws to require unanimous board
approval of any stake sale, meaning Sumner Redstone and his daughter, Shari
Redstone, would have to agree to the deal.
When Dauman announced in February that he was exploring selling a minority stake
in Paramount, Viacom's stock rose as much as 7 percent.
And many analysts have continued to praise the idea of a sale in recent weeks.
But some investors have grown increasingly hopeful that a bigger deal involving
all of Viacom might be in the works.
"I want to see the whole company get sold so why complicate it by selling half
of Paramount to someone else," Salvatore Muoio, whose firm, S. Muoio & Co LLC,
is one of biggest owners of voting shares of Viacom.
(Reporting by Jessica Toonkel; Editing by Nick Zieminski and Steve Orlofsky)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
