DOVER, Del. (AP) — A Delaware judge has refused to grant CBS Corp. a restraining order against its majority shareholder in a power struggle that could decide control of the company.
The judge said Thursday there was no court precedent to grant the relief CBS sought in trying to prevent National Amusements Inc. from trying to thwart a board vote scheduled for later Thursday on a dividend that would dilute National Amusement’s preferred stock voting power from 80 percent to 17 percent, effectively giving CBS independence.
National Amusements responded to CBS’s lawsuit by rewriting company bylaws to require a “supermajority” to approve the dividend.
While denying the restraining order, the judge noted CBS could still file a court challenge if NAI takes actions inconsistent with its fiduciary obligations to the company and other shareholders.