I'm very much against going into business with Mr. Diller" because of poor returns from companies he leads, Sam Shapiro, chairman of Shapiro Capital Management, said. The investment firm owns a 15 percent stake in Live Nation, according to Bloomberg data.
Diller is chairman of Ticketmaster and would hold that title at the new company, Live Nation Entertainment. If he accepts diminished authority, Shapiro said he may support the deal. He'll wait to see regulatory filings with those details because that will outline everyone's role."
The investor's concerns are the latest obstacle to the combination that was announced on Feb. 10 and is under U.S. antitrust investigation. Shapiro's comments prompted Live Nation Chief Executive Officer Michael Rapino, who would be CEO of the new company, to organize a conference call defending the deal. Shapiro's son, Louis, expressed support for the deal on the call and said his father is worried about value creation."
We will be able to deal with all of Sam's concerns," Rapino said. He called Shapiro's objections minor to whether he'll vote yes or no in the big picture."