Activision Blizzard Inc. (ATVI) and parent Vivendi SA (VIV.FR)
have filed an emergency appeal of a ruling that blocked Vivendi's
$8.2 billion sale of most of its controlling stake in the videogame
maker.
The company is seeking to upset a preliminary injunction that
says shareholders must vote before Vivendi is permitted to sell
most of its 61% stake in Activision.
Papers filed with the Delaware Supreme Court say the Sept. 18
decision by Vice Chancellor Travis Laster to enjoin the transaction
"irreparably harms" Activision minority shareholders, putting at
risk the $1 billion gains the stock made after the deal was
announced.
"The injunction leaves Activision and its stockholders in limbo
and at risk of losing an $8 billion deal that will return the
company to public control," lawyers for Activision wrote.
Attorneys for the shareholders who sued and won an injunction
from Delaware's Court of Chancery couldn't immediately be reached
for comment Monday on the appeal. They unsuccessfully attempted to
persuade the Supreme Court to turn down the bid for a hearing from
Vivendi and Activision.
A spokeswoman for Activision didn't immediately have any
additional comment. Last week, both Vivendi and Activision Blizzard
said in statements that they remained committed to sealing their
deal quickly, and were looking into how to do so.
The Delaware high court has scheduled an Oct. 10 hearing on
Vivendi and Activision's bid to upset the ruling, which is premised
on the idea the transaction is a business combination requiring a
vote, instead of a share buyback, as Vivendi contends.
Judge Laster's ruling puts the deal in danger because there is
no way to get a shareholder vote before the Oct. 15 termination on
the agreement, Activision told the Delaware Supreme Court.
The planned sale of its Activision stake--down to about 12%
initially--is part of Vivendi's strategy to reshape itself as a
smaller media company. It plans to use the proceeds of the sale,
along with another potential deal to sell its stake in African
phone operator Maroc Telecom (IAM.CL) to pay down debt, allowing it
to spin off French phone operator SFR.
Write to Peg Brickley at peg.brickley@wsj.com and Sam Schechner
at sam.schechner@wsj.com
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