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In either case, this trader reasoned, Time's board would help the successful bidder get the cable transfers.
The New York State commission, which also must approve cable transfers, recently turned down a transfer because of the substantial debt generated by the deal.
Paramount said Time had admitted that its proposed merger with Warner could be closed without all necessary approvals for cable transfers.
A U.S.B. cable transfers music from a Mac or PC and charges the built-in battery, which lasts about seven hours between charges.
In adding interest payments to its offer, Paramount responded to the contention that cable transfers would make the offer less valuable since Time shareholders would not be paid as quickly as it might appear.
Mr. Levin said that even if the matter was not resolved by the date of the vote, the merger could take place because it was "not specifically conditioned on the New York City cable transfers."
But he said the United States now wanted Panamanian banks and authorities to investigate the source and legitimacy of cable transfers and bank checks drawn on banks in the United States - money that is used here to buy goods in the Colon free-trade zone and for similar purposes.