CBS Up Sharply on Talk of Turner Takeover

The price of CBS shares rose sharply Tuesday as unconfirmed reports circulated that cable-television entrepreneur Ted Turner is about to make a formal offer to buy the giant broadcasting company.

On the New York Stock Exchange, CBS shares jumped $6.625 to close at $115.875. About 890,000 shares were traded, making CBS the eighth most active issue of the day.

CBS shares have risen more than $30 each in the past two months as takeover rumors have swirled, primarily involving Turner and Fairness in Media, a conservative group associated with Sen. Jesse Helms (R-N.C.). The New York-based company has vowed to resist any unwanted acquisition attempts.

On Tuesday, Turner and his company, Atlanta-based Turner Broadcasting, declined comment on published reports quoting unidentified sources in the broadcasting industry as saying that Turner would announce his offer today or Thursday.

One report said Turner would divulge his offer following CBS’s annual shareholders meeting, which is scheduled to convene in Chicago today.

Late Tuesday, a Turner spokesman strongly denied a New York Times report that Turner plans to sell his 80.6% stake in Turner Broadcasting to finance a possible CBS takeover.

A CBS spokesman said the company knew nothing about any plans by Turner.

“We have no indication as to any plans Turner may or may not have. We have no plans to liquidate, to merge, to take the company private or other such move,” spokeswoman Mary Boies said.

She also denied rumors that CBS planned to sell a large chunk of its stock to General Electric in a defensive move designed to prevent an unfriendly takeover.