American Express Says It’s Willing to Sell Cable Firm

American Express, co-owner of a cable-TV venture with Warner Communications, said Wednesday that it is “favorably disposed” to sell the venture to Time Inc. and Tele-Communications Inc. for $1.25 billion.

The announcement appeared to intensify pressure on Warner to decide whether it will sell its stake or attempt to buy out American Express, thus ending a 6-year-old partnership known as Warner Amex Cable Communications.

At Warner, however, company Vice President Geoffrey W. Holmes declined comment other than to say that the offer is being studied by corporate officers.

Under the terms of the partnership, American Express could precipitate the end to the partnership by offering to buy out Warner. The partnership rules would require Warner to either accept the offered price or to buy out American Express at the same price.

Some analysts have assumed that Warner Chairman Steven J. Ross would gladly accept $375 million for Warner’s cable interests because he has been widely reported to be attempting a buy-out of public shareholders of the company that he helped found in 1961.

But other industry sources say Ross is reluctant to sell the cable empire that he began building in the early 1970s or to sell Warner’s stake in the programming services known as MTV Networks and Showtime/The Movie Channel.

Until Wednesday, neither Time nor Tele-Communications had confirmed press reports of their joint offer to buy Warner Amex Cable Communications for $750 million in cash and to assume the company’s $500-million-plus debt.

Both companies issued press releases Wednesday, however, and further confirmed reports that they intend to operate Warner Amex as a separate joint-venture company if their bid prevails.

Although the bid includes an offer for Warner Amex’s two-thirds interest in MTV Networks and 19% stake in Showtime, Time spokesman Ed Adler said the new partnership would not retain the Showtime stake. Time already owns Home Box Office, Showtime’s chief competitor in the pay-TV industry, and company sources privately acknowledge potential antitrust problems in that area.

As reported, Warner Amex has acknowledged receiving other “expressions of interest” from companies or management groups interested in buying the company’s assets. Although no companies have publicly disclosed their bids, Viacom International reportedly “suggested” a purchase price of $710 million in cash, plus assumption of Warner Amex’s debt, and has considered raising its price.