CBS FIGHT A LITMUS TEST FOR CONSERVATIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000201740003-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: February 10, 2012
• Sequence Number: 3
• Publication Date: March 31, 1985
• Content Type: OPEN SOURCE

.
r Declassified in Part -Sanitized Copy Approved for Release 2012/02/10 :CIA-RDP90-009658000201740003-8
4,'ASHING'1'0~ POST
...,.,,-~3],~ M~~ch, 198
CBS Fight a Litmu~'Test for Conser~uc~o~s
Helms Group Faces Legal Hurdles in Ideological Takeover Bid
By Thomas B. Edsall
and David A. Vise
. Washington Post Stall Wnters `
RALEIGH, N.C.-A high-tech
political machine armed with some
of the most lucrative direct mailing
lists in the country and backed by
Sen. Jesse Helms (R-N.C.) has
drawn the management of CBS Inc.
into a fight for survival.
The contest pits CBS in an un-
precedented takeover and public
' relations battle against an ideolog-
ically driven adversary that openly
claims to be more interested in
achieving political goals than in
making money on the deal.
Regardless of the outcome of this
battle, the Helms-CBS confronta-
tion provides a litmus test of the
ability of the conservative move-
ment to translate the power of its
affluent financial base into an ideo- .
logical force in the marketplace.
And it already is providing a look at
some legal liabilities within the con-
servative political machine now un-
der scrutiny by both government
prosecutors and CBS lawyers.
i The takeover bid by Fairness in
Media, an ad hoc committee run by
the political allies of Helms, was
launched in January. Since then,
CBS has hired a battery of top-dol-
lar law firms with the goal of dis-
crediting the North Carolina-based
political machine in an attempt to
uncover what it claims are improp-
er political fund-raising and other
activities that violate federal law..
Last week CBS gave its share-
holder list to FIM after the group
agreed to restrict the use of the
names. CBS said it refus-_ a :~ e~'~
FIM the list until it received assur-
ances that the list would not be
used for political fund-raising.
FIM said Friday it will not use
the list to mail stockholders infor-
mation or launch a proxy fight be-
fore CBS' regular annual meeting
on April 17. FIM claims it is willing
to fight CBS for as long as it takes
to realize its goal of influencing the
network's news coverage.
~ ~ ~ ~XC~?RP2 i~.D
On Au . 28, 1982, Turner do-
nated 2'/z hours o !rime time on
his WTBS superstation to Helms
and Crane for a televtston documen
tar called "KGB: The Lie :..and
The Truth "The oro?ram an inve~-
ti ation into covert Soviet activrt~es
t" * +hreaten the United States,
was produced by the Coalrt~on for
. Freedom a Helms-sunnorted
oroup, and hosted by Crane. It fea-
tur d aooearances by Helms and
Sen Tohn East (R-N.C.).
CBS stock has skyrocketed since
its battle with FIM began. On Jan.
10, the day FIM filed its initial pa-
pens with the SEC, CBS stock
closed at 72'/z. On Friday, it closed
at 109'/a, driven upward not only by
the Helms attack on the network
but also by speculation in .media
company stocks following the an-
' nouncement on MarchCompanhes
American Broadcasting
1 Inc. had agreed to be acquired by
Capital Cities Communications Inc.
' for more than $3.5 billion.
The rise in CBS stock has added
strong economic support to the
Fairness in Media drive. Someone
following the recommendation to
buy 20 shares on Jan. 10 would, by
last Friday, have realized a gain of
$745, or 51 percent, on an invest-
ment of $1,450, excluding broker-
age fees. CBS charges in its lawsuit
against FIM that the group is "at-
tempting to manipulate the market
in CBS stock through statements
i intended to create the false impres-
sion that FIM's efforts will result in
i a tender offer or other conventional
,. takeover of CBS."
Some Wall Street analysts said
they believe one of the reasons why
ABC Chairman Leonard Goldenson
chose to sell the company to Capital
Cities was to avoid being the target
of a hostile takeover bid.
Declassified in Part -Sanitized Copy Approved for Release 2012/02/10 :CIA-RDP90-009658000201740003-8