The merger of the Paramount SkyDance can continue, but the lawsuit for the pension fund continues to move

A judge in Delaware rejected it on Thursday to put an immediate hold on the proposed acquisition of Paramount Global through Skydance, but has set an accelerated schedule for the examination of a shareholder action in order to enforce the examination of a competing offer.

Kathaleren St. Jude McCormick, Chancellor in front of the Court of Justice, today rejected a temporary injunction that would have excluded the merger.

The New York Retirement System, the New York City Fire Department Pension Fund, the New York City Police Pension Fund, the New York City Board of Education Retirement System and the
The teacher of the city of New York submitted a lawsuit after a special committee of Paramount had refused to have talks to take a higher offer from Project Rise Partners into account. The latter had submitted an all-cash offer in a transaction values ​​with over the parachute jump paramount transaction over $ 5 billion, the judge said.

McCormick granted an application to speed up the procedure, although it is unclear when the case of the parachute with Paramount receives the regulatory greenlight. The FCC is on day 111 of an 180-day “shooting clock” to check the agency, although this timeline is not carved in stone.

The judge did not decide on the merits of the claim, but found that the lawsuit was a “non-frivolous legal foundation”. McCormick also wrote that the plaintiff's pension funds had hit “the low bar for expedition sufficient”.

McCormick wrote: “The plaintiffs have also shown a lack of expedition of irreparable damage. If the merger closes before the claims of the plaintiffs are negotiated, it will be withdrawn forever the opportunity to maintain one. . . Top offer in a process that is free of suspicious. . . Improper activities and motivations. The potential loss of this unique opportunity is sufficient. “

The transaction should close on March 20, but the parties can extend the end date twice by 90 days if they have not received a FCC permit, the judge stated. Last week Paramount said that the merger would be completed in the first year of the year.