The Delaware Chancery Court has halted Activision Blizzard’s move to break away from its French parent company, Vivendi Universal.
Activision Blizzard announced back in July that it was breaking away from Vivendi and buying itself back in a deal worth $8.17 billion. The acquisition would see Activision Blizzard buy back roughly 429 million shares from Vivendi and investor group ASAC II would purchase around 172 million Activision Blizzard shares.
The Delaware Chancery Court issued an injunction which has halted the deal until the injunction is modified, or the buyout is approved by a stockholder vote of non-Vivendi stockholders. Activision Blizzard states that it is set on completing the transaction and is “exploring the steps it will take to complete the transaction as expeditiously as possible.”
Shareholder Todd Miller filed a legal complaint against Activision Blizzard a week after the deal was announced accusing the board of directors of “breach of fiduciary duties, waste of corporate assets and unjust enrichment.”