
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, March 9, 1991                   TAG: 9103090225
SECTION: BUSINESS                    PAGE: A/8   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

COX PURCHASE LACKED FEDERAL OK, U.S. SAYS

The Justice Department on Friday sued Cox Enterprises Inc., accusing it of failing to seek federal approval before buying $101 million worth of stock in a rival communications company.

Cox owns television and radio stations and some 20 newspapers and is parent of Cox Cable Roanoke Inc. The Atlanta company was accused of failing to notify the government before purchasing shares in Knight-Ridder Inc., a Miami-based communications company.

The Hart-Scott-Rodino Act requires individuals or companies that are planning mergers or stock purchases of a certain size to notify federal regulators in advance of completion of the deals. Under the law, stock purchasers must wait up to 30 days while federal regulators determine if the proposed deal would violate antitrust laws.

The lawsuit seeks a civil penalty of $3.67 million or $10,000 for each of the 367 days that Justice Department alleges that Cox was violating the statute by holding at least $15 million worth of Knight-Ridder stock.

Cox purchased 2.25 million shares of Knight-Ridder common stock between January and November of 1986 for $101 million, according to the complaint filed in federal court in Atlanta. It began selling the stock on Jan. 16, 1987, and reduced its Knight-Ridder holdings to less than $15 million by Jan. 28, 1987.

- Associated Press

by CNB