TAFT<TFB> BIDDERS WOULD SELL ENTERTAINMENT UNIT
A proposed buyout of Taft Broadcasting
Co by Dudley Taft and other investors includes a plan to sell
the company's Entertainment Group, according to one of the
investors.
    Jonathan Nelson, managing director of Narragansett Capital
Corp <NARR>, which is participating in the buyout plan,
declined to say if buyers have already been lined up for the
Entertainment Group. "We are considering selling the group,"
Nelson said. Wall Street analysts said any of the Hollywood
film studios which might be interested.
    Taft Broadcasting Co did not comment on the 145 dlr per
share offer. Taft has 9.2 mln shares outstanding, of which 12
pct are owned by the Taft and Ingalls families.
    Dudley Taft relinquished the title of president in July but
continues as vice chairman of the company.
    Taft-Narragansett requsted a response to its proposal by
March 12.
    If the plan is accepted, Taft would be a private company
financed by high yield bonds and bank debt, Nelson said.
Narragansett is an investment management company specializing
in leveraged buyout transactions.
    Taft shares climbed 19 to 151-1/2, causing arbitrageurs to
say investors believe the bidders may raise their price.
    Robert M. Bass, who controls 25 pct of the stock, and
American Financial Corp, holder of 15 pct, did not return
telephohe calls seeking comment.
    But Dennis McAlpine, analyst at Oppenheimer and Co, said "I
don't think it's worth 150 dlrs." He noted Taft recently agreed
to sell a group of independent television stations at a loss.
He said the entertainment group, which includes the
Hanna-Barbara animation studios, is currently hampered by a
glut of animated product.
    Taft Broadcasting has never commented on reports that its
major stockholders met recently to discuss a break-up of the
company.
    MacAlpine said there are lots of options for reshaping the
company with a distribution of various pieces to the major
shareholders among the possibilities.
    Analyst Alan Gottesman of L.F. Rothschild, Unterberg Towbin
Inc said the Bass group has been increasing its stake in the
belief the company would be worth more with a change in its
strategy. He said Bass pushed for sale of the independent
television stations because the company paid too much.
 Reuter
