CNET to appeal ruling on hedge fund nominees on board

(Reuters) -
Online media company CNET Networks Inc said it
will appeal to Delaware Supreme Court a ruling that allowed a
group of investors affiliated to a hedge fund to nominate seven
directors to its board.

CNET said it is pursuing the appeal because a "costly and
disruptive" proxy contest initiated by Jana Partners is not in
the best interests of its stockholders.

In a statement, it also added that Jana Partners should not
be allowed to seek to secure control of the company without
providing any premium.

A Delaware court on March 13 ruled that hedge fund Jana
Partners, which is leading a group of investors trying to take
control of CNET's board, could nominate directors without
violating the company's corporate bylaws.

CNET said its bylaw provisions, approved by stockholders,
are fully applicable to Jana Partners' proposals and are valid
and in the interests of stockholders.

Separately, Jana managing partner Barry Rosenstein asked
the company not to appeal the ruling and said it is time for
fundamental strategic and operational change at CNET.

(Reporting by Purwa Naveen Raman in Bangalore; Editing by
Gopakumar Warrier)

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