Viacom CEO Removed as Redstone Healthcare Agent

By Keach Hagey 

Viacom Inc. Chief Executive Philippe Dauman has been alerted that he has been replaced as Sumner Redstone's healthcare agent by Mr. Redstone's daughter, Shari, according to people familiar with the matter.

Earlier this week Mr. Dauman was alerted verbally of the change, which puts Ms. Redstone in charge of her father's health care decisions in the event he should become incapacitated, some of the people said.

The change was first reported by Bloomberg.

The move was made as lawyers for Mr. Redstone, the 92-year-old controlling shareholder of Viacom and CBS Corp. are weighing a settlement of a legal dispute with the mogul's former companion, Manuela Herzer. Ms. Herzer filed a lawsuit challenging the mogul's mental competency when he removed her as his healthcare agent last October. A trial was scheduled for May.

The Wall Street Journal reported those settlement talks earlier this week. A draft proposal is currently circulating among the lawyers, according to the people familiar with the matter, and is likely to go in front of a judge early next week.

Among topics included in the settlement talks were who would be Mr. Redstone's healthcare agent, reforms to his daily healthcare, and a payment for Ms. Herzer, the people said, though the healthcare agent change is spelled out in a separate agreement from the rest of the settlement.

Under the draft proposal currently circulating, Mr. Redstone's day-to-day healthcare scheduling will be taken over by a professional healthcare management company, the people familiar with the matter said.

When Mr. Redstone, whose health has declined substantially over the past several years, dies or is deemed incapacitated, his nearly 80% voting stakes in Viacom and CBS will be transferred to a trust managed by seven trustees, including Ms. Redstone and Mr. Dauman.

Write to Keach Hagey at [e-mail]

(END) Dow Jones Newswires

April 07, 2016 16:23 ET (20:23 GMT)

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