CBS - REDSTONE SELLING OFF CHUNKS OF VIACOM, CBS TO PAY OFF DEBT

REDSTONE SELLING OFF CHUNKS OF VIACOM, CBS TO PAY OFF DEBT

With shares in Viacom Inc. and CBS Corp. showing strong gains since the beginning of the year, Sumner Redstone's National Amusements Inc. said Tuesday that it plans to sell off a portion of its controlling stakes in those companies and use the funds to pay off creditors. The company said that it expects to earn about $1 billion from the sale. It will nevertheless continue to hold more than 75 percent of the voting control of each company after the sale is completed. The company had previously planned to reduce its debt by selling off parts of its movie-theater chain. But with real-estate rates remaining depressed, the company said that it now plans to hold on to its theaters for the time being. On the other hand, the value of its Viacom and CBS shares have tripled this year.

14/10/2009