Redstone seeks to reassure Viacom, CBS investors
DEDHAM -- Sumner Redstone, the executive chairman of both CBS Corp. and Viacom Inc., sought to reassure investors today that National Amusements Inc. doesn't plan to sell any more shares of either company.
National Amusements Inc. is controlled by Redstone and holds his controlling interest in both Viacom and CBS.
"It is important to understand that the value of NAI's assets well exceeds its debt and NAI has no intention of selling any stock of either Viacom or CBS," Redstone said in a statement.
Last month, Redstone was forced to sell $233 million of his family's nonvoting stake in CBS and Viacom to help National Amusements avoid violating terms of a loan.
National Amusements said a drop in value of CBS and Viacom shares had put its debt obligations at risk.
But the share sale fell below the $400 million initially targeted and failed to pay down enough debt to resolve the problem.
A special National Amusements' board committee is overseeing talks with its bank group and note holders about the terms of its unsecured debt. Redstone said the talks are "proceeding in a smooth and constructive manner."
In early morning trading, Viacom shares jumped 37 cents, or 2.2 percent, to $16.95. The stock has traded between $14.92 and $44.95 during the past 52 weeks.
CBS shares rose 21 cents, or 3.5 percent, to $6.28. The stock has traded between $6.05 and $28 during the past year. (AP)
