CBS Rejects Bid by Turner, Calls It ‘Inadequate’

The board of CBS Inc. today unanimously rejected Ted Turner’s hostile multibillion-dollar bid for the company, calling it “grossly inadequate” for the shareholders of the nation’s leading television network.

In its first comment on Turner’s offer, the company issued a terse statement, which read:

“The CBS board of directors today rejected firmly and unanimously the proposed offer by Turner Broadcasting System Inc. to acquire CBS as being ‘grossly inadequate and detrimental to the interests of CBS and its shareholders.”’

New York financier Ivan Boesky, meanwhile, said that he had sold about half of his 8.7% stake in CBS on the open market.

Boesky said in a filing with the Securities and Exchange Commission that he sold 1.32 million shares of CBS common stock, leaving him with 1.268 million shares, or 4.3% of the total outstanding shares.

Boesky’s shares were sold through three companies on April 8, 9, 18 and 19 at prices ranging from $106.25 a share to $110.13 a share. Boesky bought his 8.7% stake--which was revealed in an original SEC filing on April 1--at an average cost of $95.50 a share.

Boesky said that he was following Turner’s offer “very carefully.” He described it as “exceptionally complex” and said that it should not be underestimated.

“I am impressed with Mr. Turner’s business record, which clearly demonstrates that he is a skillful, tenacious and determined man,” Boesky said. “Depending on developments and the outcome of our study, we may or may not make further sales or purchases of CBS shares.”

Turner announced plans last Thursday to offer a package of stocks, bonds and notes in his own Atlanta-based Turner Broadcasting System Inc. for each of CBS’s outstanding 29.7 million shares. He is offering no cash and said he has no partners in the deal.