Sumner Redstone’s National Amusements calls on Viacom to stop ‘vicious attacks’

Sumner Redstone’s investment vehicle stepped up its campaign against Viacom board members who contend that the ailing 93-year-old mogul lacks the capacity to make decisions about his family’s media empire.

With a major court hearing looming, National Amusements directors, including Redstone, on Tuesday chastised Viacom board members for supporting a highly unusual lawsuit that challenges the mental capacity of the company’s controlling shareholder.

In a letter sent Tuesday to Viacom board members, National Amusements lambasted them for alleging that Shari Redstone was behind the move to oust Viacom Chairman Philippe Dauman and another longtime Viacom director from the family’s investment vehicle.

“These highly personal and vicious attacks on Sumner’s capacity and Shari’s honesty and integrity are offensive and unacceptable,� the letter reads. “More importantly, however, those allegations, even if they could somehow be proven, would have no impact on the legitimacy of National’s actions with respect to Viacom.�

Even if Viacom’s efforts are successful – or if Redstone was determined to be mentally incompetent, the legal tactics won’t change the outcome of the drama for control of the $40-billion media empire that includes CBS Corp. and Viacom Inc., according to a letter sent by National Amusements directors.

The war of words comes on the eve of a key court hearing Thursday in Massachusetts. Dauman and another Viacom director, George Abrams, have asked a probate judge to order an immediate examination of Redstone by an independent doctor to determine whether the mogul, who struggles to speak coherently, is mentally competent.

Redstone has asked for the Massachusetts case to be dismissed – or moved to Los Angeles, where Redstone resides.

The Redstone family, through National Amusements, controls nearly 80% of the voting stock of Viacom, which owns such properties as Paramount Pictures, MTV, Comedy Central, BET and Nickelodeon.

The sniping flared up after Redstone’s lawyer on May 20 sent a letter to Dauman and Abrams, announcing that they had been bounced from the board of National Amusements. Dauman and Abrams also were removed from the seven-member trust that will eventually oversee Redstone’s controlling shares in the two media companies.

Tuesday’s letter noted that a majority of the trustees voted to oust Dauman and Abrams. And even if the two men had participated in the vote – they would have been out-voted, the letter said.

The missive also said that even if Redstone was determined to be incapacitated, the other trustees still would have voted to remove Dauman and Abrams from their influential positions.

“The supposed directors of National Amusements have claimed that Sumner Redstone’s incapacity or undue influence does not matter, “ a Viacom spokesman said in a statement. “It matters a great deal to Viacom’s shareholders and Viacom’s board if Sumner Redstone lacked capacity or was unduly influenced in the making of recent and dramatic governance changes.�

Earlier this month, National Amusements voted to shake up the Viacom board with five new directors to replace Dauman, Abrams and others, including Frederic Salerno.

Salerno brought a separate suit in Delaware courts to challenge the shake-up of the Viacom board.

Viacom argued that if a judge determines that Sumner Redstone’s decisions came because of the undue influence of his daughter, then “any ‘vote’ made under these circumstances would be meaningless,� Viacom said. “Individuals who have taken part in such a scheme could and should be ruled unfit to serve as trustees or board members.�

National Amusements said the legal squabbling was a waste of resources, and that the stock market’s reaction appeared to endorse its moves. Viacom stock has rallied since news May 20 on a potential change in management. Shares closed Tuesday at $40.03, up $1.15, or 3%.

“As one of Viacom’s largest shareholders, National is deeply concerned with the time and resources being devoted to malicious and ultimately pointless attacks on Sumner and his family,� the letter said.

[email protected]

@MegJamesLAT