Redstone Adds New Stewards of Holdings -- WSJ
May 25 2016 - 3:04AM
Dow Jones News
By Amol Sharma
Sumner Redstone said Tuesday he has appointed three new stewards
of his media holdings, after dismissing top associates from those
duties last week.
Mr. Redstone named Jill Krutick, a former media executive and
stock analyst, and Tad Jankowski, the general counsel of his
holding company, National Amusements Inc., to the seven-member
trust that will oversee the mogul's controlling stakes in Viacom
Inc. and CBS Corp. when he dies or is deemed incapacitated.
Mr. Redstone also named Ms. Krutick and his oldest
granddaughter, Kimberlee Ostheimer, to the board of National
Amusements.
The changes, which were widely expected, were announced in a
statement issued through Mike Lawrence, a new spokesman for Mr.
Redstone.
The new appointees fill the slots that were occupied by Viacom
Chief Executive Philippe Dauman and Viacom director George Abrams,
who were informed by a lawyer for Mr. Redstone that they had been
removed from the trust and the National Amusements board.
The two men challenged their removal in a lawsuit filed on
Monday in a Massachusetts court. They alleged that Mr. Redstone's
daughter, Shari Redstone, has manipulated her ailing father and
orchestrated the changes as part of a campaign to gain control of
his $40 billion media empire.
Ms. Redstone has denied those charges.
Mr. Redstone, who has suffered various health problems and has
extreme difficulty communicating, turns 93 on Friday.
"This is my trust and my decision," Mr. Redstone said in the
statement. "I have picked those who are loyal to me and removed
those who are not."
Ms. Krutick was a senior vice president of investor relations
and corporate development at Warner Music Group and spent 15 years
as an equity analyst, including some time at Citigroup Inc.,
according to the statement released Tuesday.
Her second career is "as an abstract, impressionist artist."
People close to Viacom describe her as a close associate of Ms.
Redstone.
"I met Sumner in 1994 when I was an equity analyst covering
[large] entertainment companies," said Krutick in a statement. "We
had a close working relationship over a 10-year period as Sumner
exuberantly shared his views on Viacom with investors from around
the globe, and I have continued my longtime relationship with the
Redstone family."
Mr. Jankowski has worked for Mr. Redstone for 35 years,
according to the statement. He met the mogul while he was at the
Boston University School of Law, where he was Mr. Redstone's
teaching assistant for a course on entertainment law. He went on to
join National Amusements.
"I am honored that Sumner has chosen me as a trustee and am
convinced that he did so knowing that I would be loyal to him and
would work to accomplish the objectives of the Trust," Mr.
Jankowski said in a statement.
Ms. Ostheimer is an attorney who worked at the Legal Aid Society
before leaving to take care of her children. She is married to
Jason Ostheimer, who is co-founder of the investment firm Advancit
Capital along with Ms. Redstone.
"I look forward to contributing to the continued success of the
company my family has built over the last 80 years," said Ms.
Ostheimer.
In their complaint Monday, Messrs. Dauman and Abrams alleged
that these appointees, whose selection was widely anticipated,
would be under Ms. Redstone's control and "illegitimately tip the
balance of power to her" when control of the Redstone media empire
shifts to the trust.
They have also questioned whether the people issuing statements
for Mr. Redstone truly represent him.
The trust, upon Mr. Redstone's death or incapacitation, will
have the power to affect the makeup of the Viacom and CBS boards
and decide on big strategic transactions like a sale or
acquisition.
"Mr. Redstone is saddened that Mr. Dauman is trying to make this
dispute about his daughter," Robert Kleiger, an attorney for Mr.
Redstone, said in a statement Monday. "It is about Mr. Redstone's
right to have the individuals he wants and trusts managing his
assets upon his death, and protecting the financial interests of
his grandchildren."
Write to Amol Sharma at amol.sharma@wsj.com
(END) Dow Jones Newswires
May 25, 2016 02:49 ET (06:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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