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Viacom bids for Spelling
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March 19, 1999: 10:40 a.m. ET
Offer is just shy of $9.0210 a share for remainder of 'Melrose Place' producer
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NEW YORK (CNNfn) - Viacom Inc. said Friday it is offering $9 a share for the 20 percent of Spelling Entertainment Group it doesn't already own.
Based on the nearly 93 million shares outstanding in the producer of such TV fare as "Melrose Place" and "Beverly Hills 90210," the deal has a value of about $168 million. The offer price represents a 33 percent premium from Thursday's closing price of $6.75.
Viacom said it expects Spelling to form a special committee of independent directors, with its own financial and legal advisers, to evaluate the proposal. It said it would operate Spelling under its Viacom Entertainment Group unit.
"Having completed a strategic refocusing on its core television business, Spelling is a perfect fit with Viacom's entertainment business," said Sumner Redstone, Viacom's chairman. "By fully integrating Spelling into the Viacom family, with the efficiencies and economies of scale we can bring to bear, both Spelling's and Paramount's operations will be greatly enhanced."
Viacom's operations include feature films, television programs, publishing, theme parks and cable and broadcast networks. The company recently announced it will split its stock 2-for-1 and move to the New York Stock Exchange.
Viacom A (VIA) shares traded early Friday at 86-3/8, down 1/4. B class (VIAB) shares were down 3/8 at 87-7/16. 
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Viacom
Melrose Place
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