Turner, FCC Talk on Network Bid : He Refuses to Confirm, Deny Reports That CBS Is Target

Cable television entrepreneur Ted Turner, refusing to confirm or deny that he is considering an attempt to take over giant CBS Inc., acknowledged Friday that an attorney for his company met with Federal Communications Commission members this week to discuss procedures for the transfer of broadcast licenses.

Fueled by the Turner announcement and rumors of a takeover attempt, CBS stock traded actively Friday on the New York Stock Exchange, closing at $88.50 per share, up $4 from Thursday. About 1.26 million shares changed hands.

Meanwhile, shares of Turner Broadcasting System Inc. dropped 25 cents to close at $19.

The inquiries by Turner’s attorney, former FCC Chairman Charles D. Ferris, “were general in nature and not related to any particular broadcast group,” Atlanta-based Turner Broadcasting said in a statement.

‘Can’t Rule Anything Out’

But when asked if the statement ruled out a bid to take over CBS, Turner Broadcasting spokesman Arthur R. Sando responded: “I can’t rule anything in or out. I can’t elaborate on this.”

On its evening news broadcast Thursday, CBS-TV had quoted sources at the FCC as saying that Turner’s lawyer had specifically discussed a bid with the commissioners to take over CBS.

Turner, who owns Cable News Network along with other broadcast properties and two professional sports franchises in Atlanta, has made clear his desire to own one of the commercial TV networks.

FCC officials, commenting on speculation that Turner wants to acquire New York-based CBS, said Friday that they had received no requests or official filings from Turner.

“There is nothing before us,” James McKinney, chief of the FCC’s mass media bureau, told reporters.

Ferris postponed a meeting Friday afternoon with Roy J. Stewart, chief of the FCC’s video services division, which handles the transfer of broadcast licenses.

Establish Trust Fund

Acquisition of a company such as CBS by Turner would not require any action by the FCC. The commission would have to approve the transfer of licenses for any network-owned radio or TV stations.

Ferris declined comment Friday. But other officials, speaking privately, said Ferris talked to the commissioners about the possibility of taking over an unspecified network.

They said he inquired about the possibility of establishing a trust fund to hold the broadcast licenses held by CBS and Turner while the rest of the acquisition was completed, thereby speeding up the overall takeover.

Mary Boies, CBS vice president for corporate information, said: “CBS has had no discussions with Ted Turner regarding any plan he might have to acquire CBS. Over the past several years, Turner has expressed repeated interest in acquiring CBS or another network. On one occasion two years ago, Turner approached CBS directly and proposed a combination of his company with CBS. At the time, CBS rejected this proposal unequivocally, convinced it was contrary to the interest of CBS stockholders.”

Wall Street analysts generally were skeptical that any bid by Turner could succeed. Late Thursday, when rumors of a CBS takeover by Turner first broke, Barry Kaplan of Bear, Stearns & Co. in New York called such a move “highly unlikely.”

Kaplan estimated that a takeover of CBS would cost from $2.5 billion to $3 billion--an amount many observers say Turner would be hard-pressed to raise.

Some observers also speculated that a takeover plan by Turner might be somehow linked to Sen. Jesse Helms (R-N.C.) and Fairness in Media, a North Carolina-based conservative group, which have launched a direct bid for financial control of CBS by asking supporters to buy stock in the network.

Link to Helms Denied

However, Sando, the Turner Broadcasting spokesman, insisted that Ferris’ meetings with FCC members were totally unrelated to any efforts by Helms and Fairness in Media.

“There is no involvement with that,” Sando declared.

Speaking on Friday to the Conservative Political Action Conference, Helms continued to attack the media, saying the greatest threat to freedom and the American constitutional system “is on our TV screens every evening and on the front pages of our newspapers every day.”

Asked about progress on his own takeover bid, Helms declared: “We’re on a roll.”

CBS INC. AT A GLANCE CBS operates the top-rated television network and the world’s largest record company, owns five television stations and 14 radio stations, publishes magazines including Woman’s Day and Field & Stream, makes toys, and produces movies. Broadcasting accounts for more than 50% of its revenues.

Year ended Dec. 31: 1984 1983 Revenue $4.92 billion $4.4 billion Net income 212.4 million 187.4 million Per share $7.15 $6.31

Assets $1.9 billion Shares outstanding 29.7 million (69% held by institutions) Friday’s price (NYSE) $88.50