WILMINGTON, Del. – A Delaware judge has ordered a pause in a dispute between CBS and its majority shareholder that could decide control of the company.
The judge on Wednesday granted CBS a temporary restraining order prohibiting National Amusements from taking any action to thwart a scheduled Thursday board vote on a dividend that would dilute National Amusement’s voting power from 80 per cent to 17 per cent, effectively giving CBS independence.
The judge said he was granting the order only to protect his jurisdiction and would rule Thursday on whether it should remain in effect.
National Amusements said earlier Wednesday that it had rewritten CBS’ bylaws to require a “supermajority” to approve the dilutive dividend.
CBS has been fighting pressure by National Amusements to merge with Viacom, which also is controlled by National Amusements.