In anticipation of a rival bid to buy CBS Inc., Westinghouse Electric Corp. has lined up more than enough loan commitments to acquire the network, company officials said Thursday.
The loan commitments are coming in well ahead of the Sept. 14 financing deadline, and as they mount, they could make it more difficult for a competing bid-possibly from Turner Broadcasting System Inc.-to top the Westinghouse offer.
Westinghouse submitted a $5.4 billion bid-or $81 per share-on Aug. 1 to purchase CBS. The Pittsburgh-based company said it expects to take out three loans of $2.5 billion each to cover the bid price and to refinance debt. Loan commitments of $10.7 billion already have come in.
Among the largest commitments received are $1 billion apiece from Chemical Banking Corp. and J.P. Morgan & Co., the company’s lead banks.
The Westinghouse effort comes as the Turner board of directors prepares for a special meeting Monday, reportedly to plan a CBS bid.
In Thursday trading, Westinghouse closed at $13.50, up 25 cents; CBS closed at $81.37, up $1.37; and Turner closed at $23.25, down 50 cents.
