Skydance accuses Paramount’s committee of directors of violating the terms of its deal and demans an immediate end of the talks with Edgar Bronfman.
Skydance Media is accusing Paramount’s special committee of directors of breaching the terms of its deal by extending the period when it can engage with other bidders for the company, according to reports in The Wall Street Journal.
“While Skydance is not currently exercising its right to terminate the Transaction Agreement, we reserve the right to do so in the future,” Skydance’s attorneys wrote in the letter, which was sent Thursday.
The Bronfman-led offer “is significantly less favorable to the Paramount stockholders from a financial point of view,” Skydance’s letter to the Paramount special committee said, according to the report.
The Skydance proposal offers a payout of about $4.5 billion to Paramount’s nonvoting (Class B) shareholders, versus $1.7 billion under Bronfman’s sweetened offer.
