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Viacom CEO Dauman seeks trial by end-September over Redstone trust

Published 26/05/2016, 20:43
© Reuters. File photo of Philippe Dauman, president and CEO of Viacom, speaking at the Reuters Global Media Summit in New York
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By Jessica Toonkel and Lisa Richwine

(Reuters) - Viacom Inc (O:VIAB) Chief Executive Officer Philippe Dauman has asked a Massachusetts court to expedite a legal challenge to his removal from a trust that will determine the entertainment company's future after controlling shareholder Sumner Redstone dies or is deemed incapacitated.

Dauman and longtime board member George Abrams requested a trial date be set for no later than the end of September a court filing dated May 25. The petition requests that legal discovery begin immediately, and said it would require at least one medical examination of Redstone, who turns 93 on Friday, as well as a deposition of Shari Redstone, his daughter.

Redstone removed Dauman and Abrams from the seven-person Sumner M. Redstone National Amusements Inc Trust last week as well as the National Amusements board. A lawyer representing Redstone said the media mogul had concerns about Viacom's performance.

Dauman fired back on Monday saying the move to replace him and Abrams from both the trust and the National Amusements board amounted to an "unlawful corporate takeover" by the mogul's daughter, Shari Redstone.

"We are looking forward to an expedited dismissal of this meritless suit," Shari Redstone said in a statement.

In the Massachusetts lawsuit, Dauman questioned the mogul's mental competence. In a suit brought by an ex-girlfriend when he removed her as his designated healthcare agent, Dauman had testified that he had conversations with Redstone and he was engaged and attentive.

Frederic Salerno, Viacom's lead independent director, on Wednesday asked for a meeting with Redstone, who is considering the request, according to a source familiar with the situation.

It was not immediately clear what the agenda would be.

National Amusements, Sumner Redstone's privately held movie theatre chain, owns 80 percent of the voting stock in both Viacom and CBS Corp (N:CBS).

Dauman's amended complaint filed Wednesday stated that Shari Redstone has frequently requested that the board replace Dauman.

Representatives for both Redstones were not immediately available for comment.

Separately, Sumner Redstone asked a Los Angeles Court on Monday for an order validating his removal of Dauman and Abrams from his trust and from the board of National Amusements Inc.

The outcome of the court cases - and who ends up with control over the trust and the National Amusements board - will have wide-ranging implications for Viacom and CBS shareholders and could result in changes at the top of both companies, possibly through mergers and acquisitions.

© Reuters. File photo of Philippe Dauman, president and CEO of Viacom, speaking at the Reuters Global Media Summit in New York

Viacom shares were up 1.3 percent to $42.52 (£29) in afternoon New York Stock Exchange trading.

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