Viacom Director Presses for Access to Sumner Redstone
May 26 2016 - 3:50PM
Dow Jones News
By Joe Flint and Joann S. Lublin
Viacom Inc.'s lead independent director wants to hear directly
from Sumner Redstone about the chaos unfolding in his media empire
but so far isn't having success gaining access to the ailing
mogul.
In the past week, Mr. Redstone has overhauled his holding
company, National Amusements and the trust that will oversee his
controlling stakes in Viacom and CBS Corp. when he dies or his
incapacitated. He has dismissed two longtime associates and
appointed new stewards with ties to his daughter, Shari
Redstone.
Board member Fred Salerno has been seeking access to Mr.
Redstone, who is mostly housebound at his Beverly Park estate in
Los Angeles, through letters to his new attorney, Michael Tu.
Mr. Tu has said a meeting would "need to be considered
carefully," given the public statements Viacom has made about Mr.
Redstone and his daughter. It wasn't clear which statements he was
referencing.
Mr. Salerno, in his latest letter Thursday, said the board is
"concerned" about Mr. Redstone and "eager to talk to him face to
face." Mr. Salerno noted that as Viacom's lead independent director
and chairman of its governance committee, he should have
"unfettered and unfiltered access, which has been Sumner's policy
in the past."
Mr. Tu has also requested an agenda. In his letter Thursday, Mr.
Salerno responded with a touch of sarcasm that the meeting would
start with "greetings and pleasantries about our shared experiences
over decades together as colleagues."
That would be followed by a "Q&A session" to hear Mr.
Redstone's thoughts about Viacom's strategy, including the possible
sale of a stake in Paramount Pictures. The mogul has said through
his spokesman that he opposes the move. That would be followed by
"anything else Sumner would like to share with us" and then
"goodbyes," Mr. Salerno wrote.
A spokesman for Mr. Redstone said there would be a response to
Mr. Salerno's letter in the near future.
Viacom board members have been attempting to meet with Mr.
Redstone for some time. Mr. Redstone had agreed to meet with Mr.
Salerno on May 16, but that session was canceled.
Mr. Redstone, who turns 93 on Friday, has suffered health
problems that have badly impaired his speech. Earlier this month,
in a deposition for a court case challenging his mental competency,
Mr. Redstone struggled to respond to questions and failed to spell
out words as responses.
Last Friday, Mr. Redstone dismissed Viacom CEO Philippe Dauman
and board director George Abrams from the seven-member trust and
the board of National Amusements.
On Monday, Messrs. Dauman and Abrams filed a suit in
Massachusetts against the trust seeking to block their dismissal
and accused Ms. Redstone of manipulating her ailing father into
making these changes, a charge she has denied.
The complaint said Mr. Redstone is in "the grip of a
neurological disorder" characterized by dementia and other
conditions and is "unable to initiate or participate in meaningful
conversation."
Last fall, Mr. Dauman had described Mr. Redstone as "engaged and
attentive" in an affidavit related to the mental-competency
case.
Messrs. Dauman and Abrams filed a motion late Wednesday for an
immediate hearing on their lawsuit against their dismissal from the
trust.
"There can be no doubt that these actions are aimed directly at
effectuating control of Viacom," the motion said. Messrs Dauman and
Abrams are requesting at least one medical exam of Mr. Redstone and
that a trial be held no less than four months from now.
A spokeswoman for Ms. Redstone said, "We are looking forward to
an expedited dismissal of this meritless suit."
Write to Joe Flint at joe.flint@wsj.com and Joann S. Lublin at
joann.lublin@wsj.com
(END) Dow Jones Newswires
May 26, 2016 15:35 ET (19:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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