Publisher Activision Blizzard will appear before the Delaware Supreme Court on Oct. 10 in an effort to push through its $8.17 billion deal with Vivendi, according to Reuters.
Judge Travis Laster of the lower Delaware Court of Chancery put a temporary stop to the deal, which would have Activision buying back a majority of shares from parent company Vivendi, after Activision investor Douglas Hayes sued the publisher’s board. In his lawsuit, Hayes alleged that the deal would “unjustly enrich [co-chairman Brian] Kelly, [Activision CEO Bobby] Kotick, and the other participants.”
Hayes claims the board overstepped its authority when it went ahead with the Vivendi deal and didn’t put it to a shareholder vote.
The case will now leave the Court of Chancery and head to the state’s Supreme Court.
The enormous deal, first revealed in July, has Activision purchasing $5.83 billion worth of stock from Vivendi and a new investment group led by Kotick and Kelly purchasing an additional 172 million shares for $2.34 billion.
Once the deal is final, Activision will own the majority stake in itself. Meanwhile, Vivendi will use the cash to shore up its bottom line. It currently has around $17 billion in debt.
Kotick’s and Kelly’s investment group will own around 25 percent of Activision.
The Delaware Supreme Court is well-known for its adroit handling of huge corporate disputes, but it’s unclear if we’ll have a resolution to this issue on Oct. 10. This, along with favorable tax laws, are a major part of why so many major corporations choose to incorporate within the state.
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