Business Notes DEALS

Ted Turner has used his share of Perils-of-Pauline financial maneuvers in building Turner Broadcasting System, the parent firm of Cable News Network and superstation WTBS. But the brash entrepreneur put a time bomb under his company when he bought MGM/UA Entertainment last March for $1.5 billion. As part of the purchase agreement for the film and TV production firm, Turner issued 53.3 million shares of preferred stock in Turner Broadcasting. A provision of the deal was that starting this June, he would have to pay dividends on those shares in the form of common stock in his firm. He faced the nightmarish possibility that he would eventually have to give away so much common stock that he would lose control of Turner Broadcasting.

Last week Turner put out the fuse by selling 35% of his company to a group of 14 cable-TV operators and Financier Kirk Kerkorian for $550 million. Turner will use the money to buy back those troublesome preferred shares. Kerkorian, the former owner of 50.1% of MGM/UA, and the cable operators will gain five seats on Turner Broadcasting's eleven-member board of directors. Managing a narrow escape, Turner was able to hold on to slightly more than 50% of the company that he built from scratch.