Excite@Home Bondholders Sue Comcast, Cox

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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.

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