FCC Says Turner Will File CBS Takeover Plans Today

Lawyers for cable television magnate Ted Turner will file plans today for a bid to take over CBS, the Federal Communications Commission said Wednesday.

FCC spokesman William Russell said Charles Ferris, Turner’s lawyer and a former FCC chairman, disclosed Turner’s intention to file the takeover plan at a meeting with the FCC’s general counsel, Jack Smith, late Wednesday afternoon. He said Ferris did not disclose details of Turner’s takeover bid.

“We don’t know precisely what avenue they will take, but we do know it will be a proposal to attempt to buy CBS,” Russell said. “This is a very flexible area of law and they could do many things.”

Weeks of Speculation

The proposed bid would end weeks of speculation that the Atlanta cable television pioneer and celebrity yachtsman would try to take over the network in a bid that could cost as much as $4.45 billion.

A successful Turner bid would mean the second change in ownership of one of the nation’s three major television networks. Last month, Capital Cities Communications said it would acquire ABC for $3.5 billion in a friendly merger.

Russell said Turner would make the announcement this morning and file a formal application with the FCC later in the day. CBS officials were not immediately available for comment.

However, earlier Wednesday, CBS Chairman Thomas H. Wyman, speaking at the network’s annual meeting in Chicago, said that CBS would fight any bid to gain a controlling interest in its stock. CBS earlier this month obtained a $1.5-billion line of credit from several banks to use in fighting a hostile takeover.

Several Challenges

“Over the past several months, we have faced challenges from several parties who would either oversee or overturn the organization that has provided news and information for 58 years to the American public,” Wyman said.

“We are dedicated to resisting efforts which threaten our ability to live up to this responsibility. CBS is not an ordinary company and we are very proud to work at keeping it so,” he said.

“We are quite clear that the integrity of CBS News and the independence of CBS News are inextricably linked. Those who seek to gain control of CBS in order to gain control of CBS News threaten that independence and integrity and this country,” he said.

The FCC, which regulates the broadcasting industry, would have to approve any change in the ownership of CBS because of the television and radio broadcast licenses that the network holds. Russell said FCC officials did not give Turner’s lawyer any indication whether the agency would approve the bid.

“The purpose of the meetings was to tell the agency informally that he would make an announcement about buying CBS,” Russell said.

FCC Won’t Interfere

The FCC spokesman pointed out, however, that in another proceeding last week, the FCC demonstrated that it would not interfere in corporate takeover attempts of television firms. He said the FCC has allowed a group of dissident shareholders of another television company, Storer Communications, to proceed with their effort to win enough proxies to elect an opposition slate of directors.

Earlier, the evening news programs on both the CBS and NBC networks had carried reports of the meeting between Turner’s lawyer and FCC officials. Reached at Turner’s room in Manhattan’s Waldorf-Astoria Hotel, Robert Wussler, executive vice president of the Turner Broadcasting System, said: “We have seen the report and we have no comment.”

Wussler also declined to comment on speculation that Turner was in New York to work on the financing of his takeover plan with the E.F. Hutton brokerage firm.

Turner Won’t Comment

Turner himself was met by reporters as he left the hotel by a side door but said only that he had no comment.

On Wall Street, investors drove down the price of CBS stock amid skepticism that Turner could actually raise the money for the takeover. CBS stock plunged 6 to close at 109 3/4, losing the gain it made on renewed rumors Tuesday of a Turner bid.

A Turner spokesman said Turner had no plans to sell his stake in Turner Broadcasting to finance the takeover. He owns 80% of the company, which reported a $10 million profit last year.

If Turner acquired all of CBS’ 29.7 million outstanding common shares, the price would be $4.45 billion. Financial analysts said selling Turner Broadcasting would only bring Turner about $500 million.

In addition to its television and radio networks, CBS owns five television stations, seven AM radio stations and seven FM radio stations. It also is a producer of recorded music and owns an interest in toy manufacturing.

Report on CBS annual meeting. Part IV, Page 2.