The original merger plan called for Warner shareholders to exchange each of their shares for 0.465 Time share.

Time was not being sold to Warner in the original deal, even if most of the equity in the combined company would have ended up in the hands of Warner shareholders.

But barring a better offer, most Warner shareholders are likely to tender their shares to Time.

But a settlement with Chris-Craft Industries, the largest Warner shareholder, requiring the sale of a joint venture between the two, may have provided the perfect opportunity.

He took very good care of his Warner shareholders.

It is true that Ross took care of Warner shareholders, who got $70 a share from Time.

Such a move might neutralize Mr. Ross's position, by getting Warner shareholders to support a Time offer, and would also greatly increase the size of the resulting company.

At a 10 percent yield, that would mean $240,000 a year that a Warner shareholder might not otherwise have received.

Non-Time Warner shareholders received 0.083670 shares for each share already owned.

Originally Time had planned to merge with Warner in a stock exchange that would have left Warner shareholders owning 62 percent of the stock in the combined company.