Paley’s Stake in CBS May Have to...

Paley’s Stake in CBS May Have to Be Sold: A heavy tax liability may prompt the sale of the late William S. Paley’s 8% stake in CBS Inc. The Paley estate, valued at $550 million, must raise $190 million to pay taxes, the Wall Street Journal said. Sale of such a large block could renew speculation about a possible takeover attempt of CBS, which has long been the subject of takeover rumors. However, CBS President and Chief Executive Laurence A. Tisch controls Loews Corp., which owns 24.9% of CBS, and analysts say his holding is likely to insure that no unfriendly takeover of CBS occurs.

Paley, CBS’ longtime chairman, died last month. Much of his estate is to be divided among his six children. Sale of the 8% block would mean that the Paley family would cease owning any part of the company that Paley founded in 1928.