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Activision Blizzard and Vivendi Appeal Against the Sale Injunction That Issued Last Week

Posted on Sep 25 2013

According to VG24/7, the Wall Street Journal reports Activision Blizzard and Vivendi have filed an emergency appeal against the injunction of halting Activision Blizzard's separation from its parent company, Videndi, which was issued last week.

 

The two companies argued that the injunction "irreparably harms" minor shareholders, who were in line to benefit from $1 billion worth of gains on the publisher's stock since the deal was announced.

 

Activision Blizzard and Vivendi Appeal Against the Sale Injunction That Issued Last Week

 

The Delaware high court will host a hearing on the appeal on October 10. One of the key issues the court must rule on is whether the deal is a share buyback, as the companies argue, or whether it's a business combination, which would mean a shareholder vote is required.

 

Vivendi and Activision Blizzard plan to return the twin publisher to public control. Activision Blizzard would acquire 429 million shares in itself for $5.83 billion, while a private group of investors led by CEO Bobby Kotick would snaffle 72 million shares for $2.34 billion for just under a quarter stake. Vivendi would benefit by about $8 billion in cash, retaining just 12% of the publisher, and cutting ties with a line that is secondary to the troubled company's core businesses.

 

Activision Blizzard and Vivendi Appeal Against the Sale Injunction That Issued Last Week

 

Unfortunately, at least two shareholders objected to the decision, arguing that it 'unduly enriches' Vivendi and Kotick's investment group at the expense of other shareholders.

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