Shari Redstone To The Paramount Battle
Shari Redstone, is upping pressure on Viacom (NASDAQ:VIA) Chairman Philippe Dauman, 62 anni, as a board struggle looms and Sumner Redstone’s granddaughter join the family battles.
Shari Redstone, 62 anni, has shown she has the stomach for fight, she potentially could do a lot if she flexes her resolve about the sale of a stake in Paramount and other Key issues.
If the grim state of Sumner Redstone’s, 92 anni, condition as stated by ex-companion Manuela Herzer is true, Ms. Shari could be granted control of her father’s media empire by challenging his competence to fulfill any corporate role.
Sveral legal experts agree that Shari could launch that challenge and contend, as she has in litigation initiated by Ms. Herzer, that her father is perfectly competent to make personal decisions, such as dropping Ms. Herzer as his healthcare proxy and excluding her from his will, as he did in Y 2015.
If Mr. Redstone were declared incompetent, a 7-member trust would take control of Viacom and CBS (NYSE:CBS). And if Ms. Shari has a majority of votes on the trust, as has been speculated, she could replace the Viacom board and rid herself of Mr. Dauman.
Some insiders believe that Ms. Shari would not try to wrest control of her father’s properties until nature has taken its course. “It would not be characteristic behavior for her,” says an executive high in the Redstone Empire. But if anything could provoke her, it might be Dauman’s announced plan to fast-track the sale of a stake in Paramount.
Ms. Shari has not taken a position on the Paramount sale publicly , but media reports that her father objects to the plan read like a shot across Mr. Dauman’s bow from her camp.
If Ms. Shari was to take charge of Sumner’s affairs, those who enjoyed a remunerative place in his world would be at risk.
As it stands now Mr. Dauman is under pressure because of the company’s weak cable networks and prolonged stock decline, and he intends to sell a stake in Paramount by the end of June. Thought there is nothing concrete yet.
But, even if it s not in Ms. Shari’s nature to seek control while her father is alive, insiders believe it’s only a matter of time before the battle for Viacom is underway. “She’s keeping her powder dry,” says this person. “But she’s not done.”
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