July 20 (Bloomberg) -- Sumner Redstone, who controls Viacom Inc. and CBS Corp., said his daughter Shari Redstone has made ``little or no contribution'' to the companies in her role as vice chairman.

Directors of the media firms should choose Redstone's successor, the 84-year-old billionaire said in a letter published today at Forbes.com and confirmed by his spokesman, Carl Folta.

``It must be remembered that I gave to my children their stock,'' Redstone said in the letter. ``It is I, with little or no contribution on their part, who built these great media companies with the help of the boards of both companies.''

The comments confirm a widening rift between Sumner Redstone and his daughter, 53, who had been viewed as successor to her father as chairman of CBS and Viacom. In the letter, dated today, Redstone said he would consider buying his daughter out of their family company, National Amusements Inc.

``I'm surprised by the strength of his language,'' Tuna Amobi, an equity analyst at Standard & Poor's in New York, said in an interview. ``Obviously this raises new questions about succession given Sumner is an octogenarian.''

Class B shares of Viacom, owner of MTV and Nickelodeon, fell $1.19, or 2.8 percent, to $41.22 at 4:32 p.m. in New York Stock Exchange composite trading. They are little changed this year. CBS fell 19 cents to $34.73 and has climbed 11 percent year to date.

`No Desire'

``It is unfortunate that Sumner has chosen to publicize what Shari had hoped would remain a private family matter,'' Nancy Sterling, a Boston-based publicist for Shari Redstone, said in an e-mailed statement. ``Despite Sumner's statements in Forbes, Shari has no desire to be `bought out.'''

Shari Redstone doesn't intend to step down from the boards of either company, Sterling said yesterday, when shares of Viacom rose the most in 11 months on speculation that the rift may lead to a sale of the company.

In the letter, Redstone said he is ``perfectly satisfied'' with his 80 percent ownership of National Amusements, the Dedham, Massachusetts theater chain that controls Viacom and CBS.

``It still leaves me in a position to see to it that the companies are operated in the best interest of the stockholders,'' Redstone said in the letter. ``If Shari desires to be bought out I will consider this as long as the price is acceptable.''

In today's statement, Sterling said Shari Redstone ``will consider a resolution that fairly reflects her 20 percent ownership of National, which has been publicly valued at $8 billion.''

Family Feuds

Redstone has previously clashed with family members. Last year, he was sued by a nephew who claimed he was cheated out of a share of National Amusements.

In February, Redstone settled a lawsuit filed by his son Brent Redstone, who claimed he had been improperly removed from Viacom's board in 2003, when his father increased the proportion of independent directors. Redstone bought out his son's one- sixth stake in National Amusements, the Wall Street Journal reported.

Sumner Redstone disapproved of Shari Redstone's efforts to increase the independence of Viacom and CBS's boards, Fortune reported, citing unidentified people. He also objected to her plan to further link compensation to performance-based targets, the magazine said. Shari Redstone became vice chairman of Viacom in June 2005, before its split with CBS.

Daughter's Role

In the letter, Redstone said he was motivated by principles of good corporate governance.

``While my daughter talks of good governance, she apparently ignores the cardinal rule of good governance that the boards of the two public companies, Viacom and CBS, should select my successor.''

Shari Redstone has also differed with her father over prospects for National Amusements. The younger Redstone has a more optimistic view of the theater business than her father.

``The only reason that theaters have kept up with the rest of the world is raising admission prices,'' Redstone said on ``Conversations With Michael Eisner,'' an interview with the former Walt Disney Co. chairman that aired Oct. 23 on CNBC. ``It is not a growth business.''

Shari Redstone had been meeting with Wall Street analysts and investors in recent months, attending investor conferences and raising her profile, Amobi said. There had been unease with investors over Shari's ability to run Viacom and CBS, he said.

``Some questioned whether she had the capability to succeed him as chairman,'' Amobi said.

Putting the selection in the hands of the board may open the door to a successor Redstone doesn't choose, said James Goss, a Chicago-based analyst at Barrington Research Associates.

``It's the job of the board to pick the best CEO without regard to DNA or last name,'' Nell Minow, editor of the Corporate Library governance advocacy group, said in an interview. ``I'd feel better if I thought the board was generally more independent. It's still pretty much a hand-picked group.''

To contact the reporter on this story: Andy Fixmer in Los Angeles at rgolum@bloomberg.net

Last Updated: July 20, 2007 20:59 EDT