News Corp To Sue Time Warner

News Corp, which is led by media mogul Rupert Murdoch, said the suit will allege that an antitrust conspiracy to block Fox News Channel in New York City has taken place prior to the still-to-be consummated merger.

The suit will allege that the conspiracy has taken place prior to the still-to-be-consummated merger, Arthur Siskind, News Corp group general counsel, said in a brief statement. The suit also charges Time Warner with breach of contract and fraud in reneging on its agreement to carry Fox News in New York City.

Locked in a bitter campaign to win New York channel space for its Fox News service, News Corp on Monday urged city officials to void cable-TV franchises with Time Warner Inc.

 

News Corp executives told city officials at a hearing that the pending merger of Time Warner and Turner constituted a change of control of Time Warners cable systems in New York City and allowed early rebidding for the valuable franchises.

Time Warner holds city cable-television franchises serving 1.2 millions New Yorkers that are due to expire in 1998.

Time Warner, which denies the merger constitutes a change in management control, has refused to carry the 24-hour Fox News service and instead carries two Cable News Network services owned by Turner, and MSNBC, a joint venture of General Electric Cos NBC and Microsoft Corp.

Turner and Time Warner are expected to merge today, creating the worlds biggest media organisation. Turner Chairman Ted Turner will become vice chairman of the new company and will be the companys biggest shareholder.