Viacom asks CBS to raise its bid

Viacom has asked CBS to raise its merger bid by USD 2.8 billion or almost a quarter more than CBS’s offer, Reuters reported, citing people familiar with the matter.
According to the sources, CBS is now considering its next steps in the deal negotiations. The network initially offered 0.55 of its shares for each Viacom class B share, valuing the media company at USD 11.9 billion, below its USD 12.5 billion market capitalization.
In turn, Viacom asked for 0.68 CBS shares for each Viacom class B share, the sources said, according to the Reuters report. The media group’s counterproposal values the company at USD 14.7 billion. In February, Viacom and CBS Corporation, both controlled by the Redstone family, established special committees of independent directors to evaluate a potential combination. The two companies split in 2005.