More drama in the Sportsline-Viacom saga..after SPLN announced that Viacom intended to buy it, a lawsuit was filed Thursday on behalf of SPLN shareholders claiming Viacom is using its control stake to get an unfair advantage.
According to papers filed in Delaware’s Court of Chancery, Viacom timed a $1.50 per share buyout proposal to get the Sportsline.com stock that it does not already own at an unreasonably low price.
The suit seeks an injunction to block the deal.
Update: Bloomberg News: Shareholder Robert Terchek said in a lawsuit day in Delaware Chancery Court in Wilmington that Viacom’s offer is too low based on SportsLine.com’s narrowing losses. “Viacom timed the announcement of the proposed buyout to place an artificial lid on the market price of SportsLine’s stock so that the market would not reflect SportsLine’s improving potential, thereby purporting to justify an unreasonably low price,” Terchek said in the lawsuit.
For those interested, the case is: Robert Terchek v. SportsLine.com Inc. and Viacom Inc., CA538-N, Court of Chancery, Wilmington, Delaware.
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