Analyst: No Need To Be Pessimistic on Activision
On Thursday, according to the Associated Press Wire, the Delaware Supreme Court overturned the Delaware Chancery Court’s earlier decision “announced by Activision (NASDAQ:ATVI) on September 18″ to issue a preliminary injunction blocking the closing of the previously announced transactions between Vivendi, Activision Blizzard and ASAC II LP.
In plain English, the Thursday ruling clears the transactions to close next week. The Chancery Court had blocked the transactions, ruling that either its injunction would have to be modified on appeal or the transactions would have to be approved by a stockholder vote of the non-Vivendi Activision shareholders.
On Thursday, the Delaware Supreme Court ruled that the transactions do not require the approval of Activision’s minority shareholders. Also according to the APW, Activision’s lawyers had argued that the transactions constituted a stock repurchase and not a business combination or similar transaction that would have required a minority shareholder vote. Also on Thursday, according to Reuters, Vivendi announced that it expected to finalize the Activision sale around October 15.