CBS Corp. Wants More Money From Sibling Viacom
March 22, 2006 at 6:21 AM (PT)
VIACOM's 10K filing with the SEC last week noted that "new VIACOM" is being asked by fellow spinoff CBS CORP. to give it $460 million more in a Special Dividend as an adjustment to a previously paid amount. The original payment in DECEMBER was $5.4 billion; and CBS CORP. is claiming the adjustment due to CBS CORP.'s actual cash flow and the debt carrying over from "old VIACOM." The parties have 65 days from the notice (MARCH 14) to settle before the amounth lands in a dispute resolution process.
The same 10K notes that last JULY's shareholder lawsuit against "former VIACOM" alleging that SUMNER REDSTONE, TOM FRESTON, and LES MOONVES were overpaid in 2004 remains unsettled, with "old VIACOM"'s motions to dismiss still pending. Both VIACOM and CBS CORP. are equally liable should the suit be decided in the shareholders' favor.