Taft Vows It Would Fight Takeover Bid : Bass Family Discloses 8% Stake in Broadcaster

Taft Broadcasting vowed Monday that it is not for sale, after an investment group representing some Bass family interests disclosed an 8% stake in the Cincinnati-based company and said it might present its views on Taft’s future to company management.

Robert M. Bass, the second eldest of four wealthy Bass brothers in Fort Worth, disclosed in a Securities and Exchange Commission filing that he and two partnerships acquired most of the stake at prices ranging from $72.06 to $82.89 per share from June 3 through July 19.

The Taft investment triggered speculation that Robert Bass anticipates a takeover battle for Taft or might encourage its merger with Walt Disney Productions, in which Bass family interests hold nearly 25%.

Taft recently received regulatory approval to acquire five more television stations, bringing its total to 12. It also owns TV cartoon maker Hanna-Barbera Productions, other production and syndication subsidiaries and interests in several theme parks.

Bass family employees and associates declined to comment on the Taft investment, but, in a telephone interview, Disney Chairman and Chief Executive Michael D. Eisner disavowed any involvement.

“Speaking for Disney (and) speaking for the Basses,” Eisner said, the investment is in “no way tied together, nor will be. . . . (Disney has) no sights on Taft or any future sights on it.”

Although Eisner acknowledged that a future Disney investment in television is “not impossible,” he insisted that “this Taft situation is not one that’s involved, and it’s not any of the Basses’ intention to involve Disney in it.”

Despite Eisner’s statement, one securities analyst who asked not to be identified said: “You can’t overlook the Basses’ connection with Disney.” The same analyst speculated that Robert Bass anticipates some sort of takeover bid for Taft because of the prices he paid to acquire the broadcaster’s stock.

“It’s not worth $82 (per share) unless it’s in play,” the analyst said, estimating that a hostile takeover might drive prices to $95, and liquidation of the company might yield $110 per share.

Would Oppose Deal

In a prepared statement, Taft officials said the company “is determined to remain an independent, public media company because it believes that course is in the best long-term interest of its shareholders. Any activity designed to alter this status and objective will be vigorously and aggressively opposed.” The company noted that 18% of its stock is held by the Taft and Ingalls families and members of the company’s management.

In addition to Robert Bass, the SEC filing identified Texas Partners and San Francisco Partners II as part of the investor group. Both have served as vehicles for other Bass family investments.

Robert Bass owns about 400,000 shares of Walt Disney Productions, but neither Texas Partners nor San Francisco Partners II is known to be a Disney shareholder, Disney Vice President Erwin Okun said.