Principal Shareholders at Taft Propose Buyout

A long-brewing struggle over the assets of Taft Broadcasting seemed suddenly headed for resolution Tuesday as the media and entertainment company’s three principal shareholders disclosed that they have formed a limited partnership and will seek to buy out the company’s public shareholders.

The partnership, with about 42% of Taft Broadcasting’s stock, is led by American Financial Corp. President Carl M. Lindner. Joining Lindner are Dudley S. Taft, scion of the company’s founding Ohio family, and investor Robert M. Bass of Texas. The group said it has presented to the Taft board an offer of $155 a share in cash, or $142 cash plus one share in the American Financial unit that will formally lead the new partnership.

Dudley Taft, who had made his own $1.39-billion offer for the company in hopes of keeping it intact, said he withdrew that offer.

‘Best Possible Resolution’

In an interview, he called the new bid “the best possible resolution” and a deal that would “give shareholders a fair price, will keep the company in Cincinnati and will keep the company intact to the maximum extent possible.”

Long a highly profitable company, 28-year-old Taft Broadcasting’s profits have recently disappeared, stirring dissension among shareholders and forcing Dudley Taft out of his chief executive’s post last summer.

“Everybody had to compromise a little to get here,” said Taft, who has opposed Bass’ desire to sell off major portions of the company’s assets. “Now we can get on with our lives.”

He declined to say how the limited partnership will handle Taft’s assets, which include seven television and eight radio stations, cable systems, theme parks and an entertainment division that owns TV animation specialist Hanna-Barbera Productions and Sunn Classic Pictures. But analysts said Taft’s comments suggested that the partnership would not sell major portions of the properties.

Taft said the partners expect to file papers with the Securities and Exchange Commission today that will provide other details of the new group’s intentions.

Others to Join

Taft said other Taft family members and members of the Ingalls family, who have usually voted with them, were not included in the original partnership. But he said there was “every reason to expect” the others to join the partnership group, a step that would boost the group’s holdings to 52% of the total shares.

He also said the Taft family will head a new company but added that he could not immediately provide other details.

Lindner owns a 16% stake in the company and Bass a 25% stake.

Announcement of the partnership’s intentions were made after the market closed for the day. Taft stock closed Monday on the New York Stock Exchange at $147.50 a share, down $7 from Monday.

Analysts said they expected shareholders to accept the offer, noting that Taft stock was trading at $25 a share as recently as five years ago. Several analysts expressed surprise that the group would offer such a premium.

“I’ve tortured the numbers again and again, and I can’t understand how they see $155 of value in a share,” one analyst said. “They must see something I don’t.”