CBS Stock Soars on Report that Decision Near on CBS Records Sale
Nov. 05, 1987
NEW YORK (AP) _ The price of CBS Inc. stock soared Wednesday as a report circulated that the company could make a decision on the sale of its records operations to Sony Corp. as soon as this weekend.
CBS previously acknowledged that it is discussing with Sony, the Japanese electronics giant, the possible sale of the CBS records operations for $2 billion.
The Dow Jones News Service reported Wednesday afternoon that Fred J. Meyer, the chief financial officer for CBS, said there was ''a 70 percent chance that it will be sold outright, and a 30 percent chance that it won't.''
''It's more likely that it will happen but it's not a done deal at all,'' Meyer was quoted as telling Dow Jones. The report said Meyer said CBS and Sony could reach a decision on the sale of CBS records as soon as this weekend.
In trading on the New York Stock Exchange, CBS rose $6.12 1/2 a share to $171.50 while Sony edged up 37.5 cents a share to $28.12 1/2 .
The CBS board, which must approve such a transaction, is scheduled to convene Nov. 11 for a regular board meeting.
Two calls were placed to Meyer's office, but he was said to be in a meeting. A third call went unanswered.
Alice Henderson, a spokeswoman for CBS, said she had been told not to comment on the report of Meyer's comments.
Jason Farrow, a spokesman for Sony Corp. of America in New York, said he could not comment on the report. Farrow said Sony had not set a timetable for completion of its talks with CBS.
CBS' two core businesses are communications and records. The records group has been very profitable in recent months supported by hits from artists Michael Jackson, Bruce Springsteen, Ricky Skaggs and Wynton Marsalis.