– A judge declined on Thursday to issue a restraining order against Shari Redstone, allowing her to exert control over CBS Corp (CBS.N) and dealing a setback to the U.S. media company’s plans to strip her voting power and thwart a merger with Viacom Inc VIAB.N.
The CBS board was scheduled to meet at 5 p.m. ET to consider issuing a special dividend that would dilute Redstone’s vote to 17 percent, closer to her economic stake, from 80 percent. CBS had sought the temporary restraining order because the directors feared Redstone would replace the board before the meeting.
CBS shares fell around 6 percent after the ruling amid investor concerns that Redstone would replace CBS Chief Executive Les Moonves and the board.