CBS announces plan to fend off Turner takeover
New York — CBS has offered to buy 6.4 million shares of its stock for $150 apiece in cash and securities in a $954.8 million effort to fend off a hostile takeover bid by cable TV magnate Ted Turner. CBS's proposal on Wednesday ``stops Turner cold in his tracks,'' says an analyst with the investment firm Smith Barney, Harris Upham, & Co.
Analysts say CBS's proposed purchase contains new restrictions governing its financial status that would severely inhibit Mr. Turner's ability to buy the company.
But in Atlanta, Turner Broadcasting System Inc. said, ``We intend to pursue our offer vigorously'' while challenging CBS's offer in the courts and at regulatory agencies.
CBS has also sued Turner again in federal court, expanding on charges it raised April 22. CBS says Turner's bid violates securities laws.