Viacom family fight: Redstone daughter strengthens control

NEW YORK: The daughter of 93-year-old tycoon Sumner Redstone appeared to strengthen her control over media giant Viacom on Monday amid continued court skirmishes over Redstone's mental competence.
Redstone's vehicle for his 80% control of Viacom, National Amusements Inc., announced that it was changing Viacom's bylaws to prevent the company from selling its valuable film unit Paramount Pictures without unanimous board support.
That gave Redstone's daughter Shari Redstone, who is vice chair of Viacom and has opposed other board members and Viacom's management on selling Paramount, the power to block the deal.
Through an official spokesman Sumner Redstone has previously objected to the Paramount sale, which is aimed at strengthening Viacom's finances.
But Viacom's management led by chief executive Philippe Dauman, and board member George Abrams have alleged in court that Shari Redstone effectively controls her ailing father and is using that control to grab power of his $40 billion media empire, which also includes CBS television.
In the announcement of the changes to the bylaws Monday, National Amusements took aim at Dauman, Abrams and the Viacom independent director, Frederic Salerno, as not acting on the best interests of stockholders.
The Redstone vehicle suggested that the actions of the three "indicate that the principal focus of the independent directors is on preserving their own positions and those of Viacom's management team."
Meanwhile Dauman and Abrams sought in a Massachusetts court to speed up their battle against being dismissed as trustees of Redstone's National Amusements Trust, which controls National Amusements Inc.
They asked the court to move quickly to order a medical examination of Sumner Redstone, alleging he is not mentally competent to make decisions over his businesses and that his daughter is manipulating his wishes and is behind their dismissal.
"He is a 93-year-old man suffering from overwhelming physical ailments, including an inability to speak, stand, walk, eat, write or read," they alleged.
"He suffers from a progressive neurological disease characterized by dementia. Under these circumstances, there is an obvious need to proceed with speed." — AFP