``Reader's Digest is definitely underexposed as an asset, and it has potential waiting to be developed,'' said Linda Bannister, media analyst at Edward D. Jones & Co., but added she would be surprised if the deal were to happen. One stumbling block to the deal is convincing the foundations that own 72% of Reader's Digest Association's voting shares that a joint venture with Time Inc. would be better than remaining independent. Lazard Freres Co. is advising the foundations; Reader's Digest Association is being advised by Goldman Sachs & Co.; while Time Warner has retained Morgan Stanley Dean Witter & Co., reports Business Week. When reached Jan. 14, Mr. Logan said he would not comment on rumors.
Copyright January 1999, Crain Communications Inc.