Excite@Home Bondholders Sue Comcast, Cox9/26/2002 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
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