CBS has made a bid for Viacom that calls for a price below market value for the struggling cable company, according to published reports.
CBS and Viacom, both controlled by the family of media mogul Sumner Redstone, both formed special committees charged with coming up proposals for combining the two companies.
As expected the bid from the CBS committee offers all stock but is worth less than the current value of Viacom on the open market, according to a report from CNBC.
The bid also calls for CBS CEO Les Moonves to run the combined companies, with CBS CEO Joe Ianniello acting as his number two, according to CNBC.
Both the price and the management structure are expected to raise objections from Viacom management and shareholders.
Neither company returned emails seeking comment.
With reports of a low-ball bid circulating Viacom share close down 3.7% in Tuesday trading at $28.42.
CBS share ended at $52.86, up 4.2%.