Denver, CO, 06/11/2014 (Stocksntrade) – Activision Blizzard, Inc (NASDAQ:ATVI) has been unsuccessful in persuading a judge to discard the lawsuit which claims that the board of directors of the company had improperly let the chief executive participate in the group that purchase a large portion of the Santa Monica-based company. A Delaware judged has now ruled that the shareholders had raised very legitimate concerns about handling of the $8.2B buyout of the Vivendi SA stake in ATVI. In this Delaware Chancery Court suit, the investors have claimed that the board of the company had improperly let the investment group.
Strong Arm Tactics
This group was led by Robert Kotick, the Activision Blizzard, Inc (NASDAQ:ATVI) Chief Executive & the Chairman Brian Kelly acquires a portion of the company for $2.34B as part of its Vivendi deal. The company’s shareholders have also said that the company’s board also failed to get this investment group to pay the premium for that particular stake and that a higher price should have negotiated. The investors have also said Kotick had used threats of quitting to strong-arming the directors into allowing the investment group to acquire a major portion of the stake of the French conglomerate.
They had also blocked Activision Blizzard, Inc (NASDAQ:ATVI) from considering any alternative deals, as per the filings in the court. This argument comes 2 weeks after Vivendi, the Paris based company offered to sell 50% of its remainder Activision stake over to the public for $850M. This sale will now leave Vivendi with around 41.5M shares, or 5.8% of the maker of – “World of Warcraft”. The company’s shareholders are also saying that Kotick & Kelly will now have excessive control over the company which makes “Call of Duty. Activision Blizzard, Inc (NASDAQ:ATVI) is a global publisher of PC, online, console, mobile and handheld interactive entertainment products.