Report : CBS Planning Proposal For Viacom Deal Within Days

(RTTNews) - CBS Corp. (CBS-A, CBS) is preparing to make an initial merger proposal to Viacom Inc. (VIAB, VIA) within days, the Bloomberg reported said, setting the stage for negotiations that could bring the media companies back together 12 years after they were split up.

The proposal, from CBS's independent board committee to its counterpart at Viacom, is likely to include an opening suggestion on valuation as well as leadership plans for the combined entity. The timing of the proposal is fluid and details won't be released publicly, the report said citing people familiar with the matter.

While the two sides hope to announce an agreement before they each report quarterly financial results in May, discussions are ongoing and there's no guarantee a deal will be reached, the report said.

Independent board members at Viacom and CBS spent the past two months considering the merits of a merger as Shari Redstone, daughter of controlling shareholder Sumner Redstone, renewed her push for a deal more than a year after the companies last abandoned talks.

CBS, which owns the most-watched TV network in the U.S., is planning to propose that its chief executive officer and chairman, Leslie Moonves, lead the combined company and ask that Redstone leave management decisions to him and his team. The two committees will need to resolve a series of governance issues, including a CEO and second in command, the composition of the board and the level of independence from the controlling shareholder. The Redstones' holding company, National Amusements Inc., holds 80 percent of the voting stock of both entities.