P.M. BRIEFING : QVC Network Inc. to Acquire CVN

CVN Companies Inc. has agreed to be acquired by QVC Network Inc., a smaller competitor in the televised home shopping business, for more than $400 million in cash and stock, the companies said today.

The deal would create a company that backers said could better compete against the video retailing leader, Home Shopping Network Inc., in an industry that generated $1.4 billion in revenue last year.

The agreement calls for QVC, of West Chester, Pa., to purchase all CVN common stock for $19 a share in cash plus one-eighth of a share in QVC common stock.

CVN, which operates the Cable Value Network, the Fashion Channel and America’s Shopping Channel, had about 18.3 million shares of stock outstanding, making that cash portion of the deal worth about $350 million. The stock portion of the deal would add another $40 million to the price of the transaction at recent prices.