mr. dauman and mr.ams who again have been removed from the trust that oversees the stake in national amusements that in turn controls viacom and cbs, they are going to the court saying they want immediate judicial relief and a court ruling to invalidate the purported removal of them by mr. redstone as trustees of the trust and also invalidate the removal as well as directors of national amusements. they would assume then want him, that is mr. redstone, to be deemed potentially incompetent and not able to make decisions. and very harshly worded language, guys, that accompanies this lawsuit. in a press release i just received phillippe dauman says of shari redstone after years of -- she's inserted herself into her father's home. go onto say in fact she's recently repeatedly arranged viacom board members to meet with her, we've heard some of this language in the last 48 hours as well. mr. abrams, for his part says my soul purpose in joining this lawsuit is to allow the court to determine whether sumner red

mr. dauman and mr. abrams. back to the board fighting in a sense for mr. dauman, it's extraordinary.n if in fact the move is made to replace them and we end up in delaware court, it will be very interesting to see what is decided in that courthouse. of course other litigation already commenced in massachusetts to try to reinstate mr. abrams and mr. dauman on the trust. and much may come from here. but of course we're talking about two large companies. and that being cbs and viacom, and their fate seemingly on hold right now as one continues to try to negotiate a deal to sell a minority stake in the paramount studio, simon. >> seems never ending. >> well, it's just begun. just begun. >> this is true. in the meantime this morning's case shiller index shows house prices nationally gaining 5.2% over the past year, separately of course both new and existing home sales surging to their highest levels this year setting up the market for what would appear to be a strong spring selling season. we take a look at the home builders, the basket of stocks year-to-date badly lagging the broader mar

mr. dauman would claim by his daughter. he is 93 years old today is mr. redstone.ut, guys this is just one heck of a week. unprecedented really and kind of some of the things that i've seen and what is a pretty long career at this point. having the current and sitting chairman and ceo suing the daughter and in effect going against the wishes of his controlling shareholder. you don't see that every day. and, of course, it does leave viacom and potentially cbs in something of limbo right now as the two struggle to figure out just who is in charge? >> for viacom, that could be a good limbo. the viacom stock has done horribly. 35% decline. but even this past week alone it's up 13.5%. there must be thinking that this would shake up at least at the very least yield better management of the better company. >> absolutely. i think that is the key reason it's been up. the people i speak to do not expect in any way that shari redstone and/or mr. redstone would seek to sell the company. it is on the idea that new management will be installed. but for now, it has the infect of

mr. dauman and mr. massachusetts, saying that it was a case in which a 93-year-old man's multibillion dollar businesses had been seized by an estranged daughter who has manipulated her father to achieve her goals. alleging undue influence in that change in trying to overturn it. that case will of course take quite some time to work its way through the probate courts of massachusetts. you then had a response from shari redstone and her father in the superior court of the state of california where they asked to confirm his move to have two assume their place on the trust as directors which they since have. and then to today in which i, again, those directors of viacom are at least preparing for the possibility that sumner redstone, who again controls 80% of the votes at viacom and at cbs, will call a meeting, essentially present his votes and say i am replacing these directors with new directors. if in fact that does occur, the directors at viacom who are prepared to go immediately in court in delaware se

mr. dauman, and we are going to fight you the minute you do that. resting because loor a lot of behind the scenes stuff going on. independent board members want to meet with mr. redstone. okay? they want to meet with him for the simple reason to determine his competency at -- with -- liz: didn't a judge say he's competent? >> okay. so here's now what i understand. there is -- fred, the lead independent board member has gone to the redstones and said i want to talk to summer. i want to have a talk with him with another independent board member. they have said, the lawyer for mr. redstone said we will allow you to sit down but only if you submit your questions first. so this is turning into a real insane thing. listen, the board's position is simply this. mr. redstone is incompetent right now. he's not competent enough to remove redstone. and if sherry wants to remove it, she has to give us a corporate government's reason why because she's better than you. and if you do take that step of removing him and we will fight you in court and sue you in delawa

mr. dauman and he have filed suits. they've asked the judge to speed that up. >> their trustee seats. >> exactly. trying to get that trial under way as early as september. they're waiting to see if that will happen. >> exactly. these massachusetts courts, i'm told, moore very slowly, bill. meanwhile they may be faced with its entire board of directors having been ousted. now, as i have been reporting since tuesday, the board would immediately go to delaware and see seek relief there saying they had been removed incorrect incorrectly, but this is setting up a very difficult situation for viacom's management which is trying to sell a minority stake in paramount. you might understand if you're on the other side of that negotiating to buy a minority stake, you may be stepping back and saying, how do i know you're going to be around when i sign this deal. >> the trustee may be irrevocable but the trustee board seats may not. >> yes. >> thank you. >> thank you. >>> the s&p is outperforming the nasdaq. it's up half a percent a

mr. dauman. uestion now i can tell you comes down to this, which is an expectation on the part of directors of viacom that they're going to be removed very soon by mr. redstone. now, when you look at the complaint that they filed yesterday in the probate court in norfolk, massachusetts, and you read it, of course they believe that mr. redstone is under the full control of his daughter shari, that he is not capable of making decisions any longer and that simply put she is basically taking a pen and writing his name on these decisions. she fully and completely rebuts that is the case and says without reservation that these are his decisions and there is a quote in the latest release announcing the changes of the trust. this is my trust and my decision. i have picked those who are loyal to me and removed those who are not. that is according to mr. redstone, a quote. and that is what much of this will come down to. but what i can tell you is that there is a concern on the part of -- or an expectation

dauman's side. and we should point out again, mr. little hands, we were the first to report this news.is is pretty big. as we said yesterday, mr. hands, the -- this could be coming any day. liz: and the stock, by the way, we should look at it, is jumping pretty decently here. but also some other unrelated news. viacom has renewed its carriage agreement with cox. cox cable. so the stock is up four and a quarter percent. >> well, the stock is not -- going up because of a board implosion -- a company implosion. which is what this is. this has a lot of investors scared. liz: yeah. >> and that's why this is, this thing is coming to an end imminently. it could be today as we reported. it could be tomorrow. liz: quick word on -- >> but i just want everybody. this could happen. you know, over the weekend as far as we know. liz: i bet they're meeting over the weekend. >> they are. they are. sherry is meeting with her people. we know that mr. hands. we know that s so sohmner is communicating. we know the board is, like -- has according to my source, that lawsuit locked and loaded. here's what we

mr. koskinen, never interviewed him. >> you didn't mention the fbi. >> he said the department just is. >> issa doj. >> the time of the gentleman has expired. the chair recognizes the dauman from texas mr. gohmert for five minutes. >> thank you mr. chair. appreciate the witnesses being here today because this is important since the internal revenue service is the only entity of which i'm aware the federal government that can ignore the constitution as part of its job. nobody else ignores the constitution but they can take people's money without due process, they can take their property, they can move in and destroy take a business that they take a lifetime to build and they have done that so it is particularly important that such an agency they should ignore the constitution must itself be completely overwhelmed with integrity. .. bene >> until you get to the supervisors and above and that is where the rot is occurring and the stink is getting overwhelming. one of the judges in tyler texas, legislated from the bench and had an incredible sense of integrity and had he been listening to koskinen, he had no use for people that came in and obfuscated as this man has done. now

and dauman putting out a press release saying that mr.esn't have the mental capacity to make the decision. he said several months ago he had the mental capacity when it came to dealing with that girlfriend in that lawsuit. we'll see how it goes. >>> donald trump narrowed the gap with hillary clinton in the presidential race. according to a new nbc news wall street journal poll. the gap is 3 percentage points compared to 11 in april. >>> tribune company rejected the latest take over proposal from g michig gannett. it did propose a mutual nondisclosure agreement to allow a path forward for a possible deal. tribune sold 7.7 million shares at $15 a share. same price as a gannett offer that tribune reject. >>> boeing securing a major jet order today. viet jet will buy a hundred planes at list prices. the low cost carrier is seeking to expand in a market that has grown 20% annually in the last three years. >>> that airline posting a more than 40% increase in net profit. it's also warning that worries about terrorism could push the air fares dow

mr. gabelli is here. >> thank you. >> last shot on viacom dauman, you want him to stay or go?i's decision. and she has 80% of the vote and that will work out. look, you want to buy merges, you want to be ahead of the game. we have three or four companies -- announced selling probably the rest of their african assets except tanzania, bought by malone, you have a convenience store business and then you have mergers in the energy business, oil and gas. so utilities, public service into mexico, el paso electric, everyone is consolidating in that business allowed to do that. so, you know, stay tuned in terms of broadcasting. stay tuned in terms of small regional banks. a lot more love making -- >> who's going to buy all the spectrum on monday? -- or tuesday rather. >> well, the spectrum on monday is being auctioned off -- the broadcasters have a reverse auction. and they're all buyers. >> have a great weekend. >> you too. enjoy nashville -- knoxville. >> that's it for us. make sure you join us on tuesday. it's time for "squawk on the street." ♪ >>> good friday morning. welcome to "

mr. redstone engaged, attentive and as opinionated as ever. just yesterday a statement from redstone opposed a plan that dauman has been owe pozing for months sayingted resources from the continuing challenges facing the company. viacom shares are down about 40% in the past 12 months. now dauman wins the suit he filed today, he'd be reinstated as a trustee and redstone would be deemed incapacitated. dauman loses, sherry redstone can push him out as ceo of viacom. >> hard to keep track of the twists and tournz. turns. thank you. our next guest says the board room battles raises red flags but more concerning to him is the duel class stock structure which gives founders the large share of power and decision making. the stock is trading at $41 a share. good to you have with us, michael. from a shareholder perspective, what should shareholders be rooting for in term a possible turn around of a stock that is down 40% over the past year? >> in our opinion, the only path for shareholder appreciation at this spoint a change in management. current management team has been in place for ten years now. the shares have been consistent underperformers operationa