Westinghouse Electric's agreement to buy Infinity Broadcasting probably strengthens the case for Westinghouse to separate its broadcasting and industrial units, say institutional analysts.
Jeffrey Heil, vice president in equity research for Society Asset Management, said the purchase of Infinity, which was announced today, adds significant revenue to the broadcast side of Westinghouse's business. Society owns about 654,000 shares of Westinghouse.
``From a strategic standpoint, it's a long-term positive,'' although it could cause some near-term price volatility for Westinghouse's stock, said David Robinson, equity research analyst for Banc One Investment Advisors. Banc One owned 1.1 million shares of Westinghouse.
``I'm not unhappy, as long as they don't overpay,'' said Todd Grady, vice president and portfolio manager for Pioneering Management, which owns about 5 million Westinghouse shares.