CBS and majority shareholder duke it out in court

WILMINGTON, Del. — CBS and its majority shareholder are duking it out in a Delaware court.

CBS has sued its majority shareholder, National Amusements, ahead of 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.

National Amusements said Wednesday it has rewritten CBS’ bylaws to require a “supermajority” to approve a dividend.

CBS attorneys told a Delaware judge at a hearing later Wednesday that the last-minute move by National Amusements shows that it is trying to usurp the board’s authority.

CBS and Viacom are both controlled by National Amusements, which has been pushing for the companies to combine. CBS, helmed by Les Moonves, has said it is not in the company’s best interest to combine with Viacom.