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Breakingviews: Activision's shareholder showdown

Tuesday, Oct 01, 2013 - 03:26

Oct. 1 - Breakingviews editors discuss how an investor-inspired, court-mandated vote on the video games maker's $8.2 bln deal to buy out Vivendi may do nothing but cost shareholders more.

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That's our democracy is in crisis night before you rush off -- not talking about the Washington shut down -- talking about shareholder democracy. We've got an -- deal that may -- coming unstuck as a result of an activist shareholder -- -- shelters shelled -- in the activation failure -- -- is getting annoyed at that plans to buy out. Most of the remaining saying the evidence in Activision wanted to divorce Vivendi opposed 61% of Activision shares don't get rid of them Activision says final -- him back. -- a pretty good deal under the deals announced the stock repurchase the value market value of Activision went up a billion dollars and one journalist and -- and that's -- little provision. So let's say this operates an actual act Michelle grew up a big guy like Carl -- -- now he's just back guy. Just a guy with a bunch of companies like his wife and his point is what does he want more money dizzy because I mean tax -- buying this Fella well and we think looks pretty good on its face and you know it's that you -- -- the corporation says and business combination requires. A vote that approval. By the minority shareholder. The business combination because tactically. Activision is buying a subsidiary. That holds the stuff that's that's admirable that stopped him but it is and this is wiring and particularly under the laws yet as -- -- -- -- And so it's it's credible envelope. And that. The articles this company -- -- to their distance tightening needed to division of the banana. You can say that deal is a good deal so this is what the deal. And has chosen probably support the deal with that was about it -- of the obvious answer is well have a -- back. Right this is a little bit like in a way a little bit like apple and they but I only remember the situation one of his being wanted apple to do some things that forget that for second -- Hilton. Pointed out that they bundle together three resolution trust in one right in the annual meeting and you know and said unit. Is that -- says come on let me go to do them one by one. Now they'll make sensible government through its provisions that the fact of the matter is that we'll -- you have to do them but once I would have made sense but for that but it tools that perfectly legitimate to say. You go to do it a different way if it's in this case. You could be blowing up the advantageous deal not -- Judge said you know what I agree with the I think that's pretty good deal but you know the market and stuck I don't run run by what the markets I don't -- what what the -- so what's the loss as a cavity there so what's what's the down some -- -- -- actress and I guess they sent an attainable do you have -- Japanese -- -- -- we'll try and we will all of shareholder -- but we don't know who. That we can do it in time before. The deal scheduled to clauses which is two weeks not overcoming much bluster is this kind of this -- that much Reynolds yeah. Well yeah I you know I think honestly in a bond that was that their own fault. You know you'd think maybe they would have realized that their own significant incorporation would call for this thing but you know -- in the situation for whatever reason weapon at all that is. You know they can either because they can try get a shareholder vote as quick as they can. If they can't they're gonna have to go back all the parties and get approvals to extend the transaction. Or -- you know they've appealed this decision as I -- on October -- -- could win that right. Or they may just have to find some way to make this point -- go way with. Which is you know -- these things that can thanks Reynolds thanks Richard will be keep in on this and to articles have on the Washington shut down. -- will be back with more breaking -- --

Breakingviews: Activision's shareholder showdown

Tuesday, Oct 01, 2013 - 03:26

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