CBS plans to sell last of Westinghouse Seeks to unload nuclear, contracting, process control units by 4th quarter

Broadcasting

May 07, 1998|By BLOOMBERG NEWS

NEW YORK -- CBS Corp. expects to start talks within a month to sell its remaining Westinghouse industrial units, after several unnamed suitors made preliminary offers, Chairman and Chief Executive Michael H. Jordan said yesterday.

New York-based CBS, which changed its name from Westinghouse and left Pittsburgh last year to focus on media businesses, plans to sell the nuclear power, government contracting and process control units by the end of the third quarter, Jordan said at the company's annual meeting.

CBS hopes to sell the Westinghouse businesses to a single U.S. buyer, which would avoid concerns that transferring sensitive nuclear technology or government contracts to another country could hurt national security. CBS is expected to consider separate sales for the units, which have a combined work force of 6,000.

The nuclear energy unit makes and services energy plant equipment. Its process-control unit makes instruments that help run plants and machinery. The contracting business mainly cleans up nuclear waste at U.S. military and Department of Energy sites.

Jordan didn't name the potential buyers or provide a price range of the initial bids.

In October, the company sold its Thermo King refrigeration unit to Ingersoll-Rand Co. for $2.56 billion in cash. A month later, it agreed to sell its conventional power business to Siemens AG of Germany for $1.5 billion in cash.

Jordan said the transaction with Siemens, which doesn't plan to bid for the remaining Westinghouse units, would be completed "within the next several months."

Pub Date: 5/07/98

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