Deals
Investor Considering Legal Action Against Viacom on CBS Merger
- Gabelli’s fund Gamco owns 8.93% of Viacom voting shares
- Merger doesn’t have shareholder vote at either company
Mario Gabelli
Photographer: Chris Goodney/Bloomberg
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Mario Gabelli, whose fund Gamco Investors Inc. is the largest outside holder of Viacom Inc. voting shares, said he’s exploring legal options because his stock is being bought for less than what he perceives as market value in the company’s merger with CBS Corp.
“I’m checking with the lawyers now, to see what they can do under Delaware law,” Gabelli said in an interview after the deal announcement. “Do they need a majority of the minority to approve this deal? In which case, it’s very hard to see how Viacom can’t get a premium for its voting stock. It’s been selling at a premium for 10 years. As opposed to CBS (voting stock), which is not.”