Court says Jana can nominate members to CNET's board

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Jana Partners , the hedge fund trying to take control of the board of online-media company CNET Networks, publisher of News.com, on Thursday said a court ruled that the investors have a right to nominate seven directors to the company's board and to propose expansion of the board by five members.

CNET in January said the efforts of a group of activist investors led by Jana, to nominate two directors to the company's board and expand it to 13 seats, were improper under CNET's bylaws.

Jana partnered with Sandell Asset Management, Paul Gardi of Alex Interactive Media, Spark Capital , and Velocity Interactive Group to seek changes at the company.

Jana took the matter to the Delaware Court of Chancery, challenging CNET's interpretation of its bylaws. CNET said it is reviewing the court's written opinion and considering an appeal.

11.11.08 08:14

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