The action reflects an apparent belief by Bass that the proposed Time-Warner merger is a bad deal for Time's shareholders, individuals in the industry say. Such a move also would be in keeping with Bass Group's continuing interest in publishing companies. However, a purchase of Time would be a difficult undertaking even for billionaire Robert M. Bass. Based on yesterday's closing stock price of $111.25 a share, Time would have an indicated value of about $6.3 billion. A Bass spokesman wouldn't comment. But the individuals said the group began buying Time shares after the Warner transaction was announced two weeks ago and has accumulated more than 2% of Time's 56.6 million shares outstanding. It wasn't clear whether the Bass Group would simply hold the shares or mount a hostile offer for Time. However, it is understood that the group believes Time's shares are greatly undervalued in the Time-Warner transaction, which calls for Warner shareholders to receive 0.465 Time share for each Warner share owned.
Full text: Wall Street Journal, Mar 21, 1989
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