Activision Blizzard and parent company Vivendi have filed an emergency appeal of last week's ruling that halted Activision Blizzard's separation from its parent, The Wall Street Journal reports.
Ruled by Vice Chancellor Travis Laster and filed with Delaware Supreme Court, the preliminary injunction issued on Sept. 18. states that the separation will remain frozen until the deal is approved by stockholder vote of non-Vivendi stockholders or the injunction is modified on appeal.
According to the Wall Street Journal, Activision told the court that there is no way to get a shareholder vote before the Oct. 15 termination on the agreement. The Delaware high court has set an Oct. 10 hearing on Vivendi and Activision's opposition to the ruling.
Activision Blizzard announced in late July that was breaking away from Vivendi Universal and buying itself back in a two-part share acquisition for $8.17 billion. The deal involved Activision buying back approximately 429 million shares from Vivendi for $5.83 billion. Investor group headed by the then Activision Blizzard CEO Bobby Kotick and co-chairman Brian Kelly, ASAC II, aim to purchase roughly 172 million Activision Blizzard shares from Vivendi for $2.34 billion.
A week after Activision Blizzard's separation announcement, shareholder Todd Miller filed a complaint against the company, its board of directors and Vivendi, claiming "breach of fiduciary duties, waste of corporate assets and unjust enrichment" and that ASAC II will "score an immediate paper windfall of $664 million." Hayes instigated the lawsuit earlier this month in an attempt to stop the separation.
Last week, Activision Blizzard stated that it is set on completing the deal and "is exploring the steps it will take to complete the transaction as expeditiously as possible." The company's lawyers told the court that "the injunction leaves Activision and its stockholders in limbo and at risk of losing an $8 billion deal that will return the company to public control."