– The board of CBS Corp (CBS.N) headed to court on Wednesday in an attempt to strip voting control from the Redstone family, which has sought to merge one of the biggest U.S. media companies with peer Viacom Inc.
National Amusements Inc, the Redstone movie theater company that controls CBS and Viacom, said a proposal to strip its CBS voting power is “invalid” and urged a judge to rule against CBS at a 2 p.m. ET hearing in Wilmington, Delaware on Wednesday.
CBS is seeking a restraining order to prevent Shari Redstone from rewriting its bylaws or sacking directors ahead of a board meeting on Thursday. CBS has said its board is considering a special dividend that will dilute National Amusements’ voting power to 17 percent from 80 percent, a move legal experts called a “nuclear option.”