News

Excite@Home Bondholders Sue Comcast, Cox

9/26/2002 4:57 AM Eastern

The unsecured bondholders' committee of Excite@Home Corp. filed a suit
against Comcast Corp. and Cox Communications Inc. Monday, alleging at least $600
million in illegal insider profits, according to a filing Thursday with the
Securities and Exchange Commission, Dow Jones reports.

The two MSOs combined owned more than 10 percent of the high-speed
Internet-service provider's common stock, qualifying them as insiders.

The committee argued that Excite@Home's three controlling shareholders --
AT&T Corp., Comcast and Cox -- each used their insider positions to force it
into a series of agreements that benefited the holders but left Excite@Home
'critically weakened.'

Those pacts allowed Cox and Comcast to turn over control of Excite@Home to
AT&T, the complaint said.

Comcast asserted that it believes this suit is without merit and intends to
vigorously defend itself in the action, according to Thursday's filing with the
SEC.

Want to read more stories like this?
Get our Free Newsletter Here!
October