Clarion-Ledger from Jackson, Mississippi • Page 22

6C The Clarion-Ledger Thursday, January 8. 1998 America Online sues more bulk e-mailers The Associated Press Justice Department asks Texas judge to delay Bells' long-distance ruling By Jannin Avra Associated Press Writer "We expect to build precedents that show spamming is illegal." The suit follows a victory for the online company in December against Over the Air Equipment which was enjoined from sending similar bulk e-mails to AOL members and forced to pay the company damages. AOL also has won injunctions against several other bulk e-mailers. AOL is the nation's largest online service with 10 million members. boxes with unsolicited bulk e-mails with bogus return addresses and refusing to stop when asked by AOL.

George Vradenburg, general counsel for the online service, said the damages sought were "substantial" and "enough to deter these people." No one could be reached at the three companies, and only TSF Marketing had a telephone line. "We expect to continue to win injunctions, we expect to continue to win damages," Vradenburg said. NEW YORK Hot on the heels of federal court victories, America Online has filed suit against three more bulk e-mail companies, seeking injunctions and unspecified damages. In a suit filed in federal court in Alexandria, on Tuesday, the nation's largest online service accused IMS of Knoxville, Gulf Coast Marketing of Baton Rouge and TSF Marketing of Riverside, of stuffing members' electronic mail Children's Broadcasting selling stations cendented access to the long-distance market because they superseded a 1982 decree that barred them from the business. That decree broke up the Bell System into a long-distance company, and seven regional Bell companies to provide local phone service.

After mergers, five regional Bells now exist. On Friday, MCI and Sprint asked the judge to suspend his decision. Kendall's decision paved the way for SBC Communications and US West to offer long-distance service to their local customers. The companies say they intend to offer service but are not doing so yet. If Kendall denies the stay, longdistance companies say they'll ask the 5th U.S.

Circuit Court of Appeals in New Orleans for a stay. That court handles appeals for Texas, Louisiana and quired all five Bells to open their local phone markets to competitors as a condition of winning federal approval to provide long-distance service to local customers. Specifically, Kendall ruled that the provisions constitute a "bill of attainder" punishing the Bells for the past anticompetitive sins of their one-time parent, and for any offenses that they may commit in the future. The Constitution bars Congress from passing any "bill of attainder" that inflicts punishment without a court trial. Courts have rarely held a law to be unconstitutional on these grounds.

In its motion to Kendall, the government said the Supreme Court has done so only twice in this century. Both times the law at issue was enacted in response to the perceived threat of the Communist Party, the government said. Under the provisions now overturned, the Bells enjoyed unpre- WASHINGTON Joining MCI and Sprint, the government asked a Texas judge Wednesday to delay his ruling that two regional Bell telephone companies could offer long-distance service. To avoid "considerable disruption" to the telecommunications market and to preserve the status quo, the Justice Department asked U.S. District Judge Joe Kendall of Wichita Falls, Texas, to stay his Dec.

31 decision until an appeal is heard. Kendall ruled that a key portion of a 1996 telecommunications law discriminates against at least two Bells SBC Communications and US West because it does not apply to GTE Southern New England Telephone Frontier Corp. and other local companies. The overturned provisions re der the name Radio Aahs, announced the sale last June, saying it was triggered by competition from Walt Disney Co. and its ABC Radio unit.

The stations being sold are: WJDM-AM 1660 in New York; KPLS-AM 830 in Los Angeles; WAUR-AM 930 in Chicago; WPWA-AM 1590 in Philadelphia; WCAR-AM 1090 in Detroit; KAHZ-AM 1360 in DallasFort Worth; WWTC-AM 1280 in Minneapolis; KIDR-AM 740 in Phoe nix; KKYD-AM 1340 in Denver; KMUS-AM 1380 in Tulsa, Okla; KTEK-AM 1110 in Houston; WZER-AM 540 in Milwaukee; and KYCR-AM 1570 in Minneapolis. At the time the sale was announced, CBC said it would continue to serve its network of 30 radio station affiliates. However, the company notified the stations in November that it would end distribution of its Aahs World Radio programming after Jan. 30. Ths Associated Press MINNEAPOLIS Children's Broadcasting Corp.

announced Wednesday that its shareholders have approved the $72.5 million sale of all 13 of the company's radio stations to Global Broadcasting Co. "All requirements have now been met, and we look forward to closing the sale of the stations later this month," said Christopher Dahl, CBC chairman and chief executive. The company, which has produced children's programming un Top physician management companies call off merger COT The Associated Press NASHVILLE The nation's No. 1 and No. 2 physician management companies, MedPartners of Birmingham and PhyCor of Nashville, said Wednesday they've called off their merger.

The companies couldn't work through "significant operational and strategic differences," said Joseph C. Hutts, chief executive, president and chairman of PhyCor Inc. He said the key areas causing problems were information systems, development and operations. "The MedPartners team has worked very hard these past two months to gain an understanding of PhyCor's business philosophies and practices and to have them understand ours, and it became apparent the differences in the two companies were significant," said Larry R. House, MedPartners Inc.

chairman and CEO. The companies announced the $7 billion deal in October. The nation's second-largest physician-management business, PhyCor, was to acquire its larger competitor, MedPartners, creating a company with 35,000 doctors serving more than 3 million patients. PhyCor Inc. operates 55 multi-specialty clinics with 3,860 physicians in 28 states and manages independent practice associations with more than 18,700 doctors in 28 markets.

MedPartners Inc. develops, consolidates and manages healthcare delivery systems, manages physician practices in 40 states and runs the nation's largest independent prescription benefits management company. Republic pays $257M for 4 auto dealer groups Knlght-Rldder New. Service Houston, Owner of 22 franchises il Houston, owner of 22 franchises in 4m-KM) (DSXiJCiSg the Houston and Corpus Christi FORT LAUDERDALE, Fla. LB Republic Industries woke from its holiday rest with a bang Wednesday, spending $257 million for four companies, including the biggest car dealership in Houston and an Orlando, dealer group that was about to go public.

Republic, the Fort Lauderdale company that became the nation's biggest auto retailer in 1997, will close the acquisitions with either cash or stock. Republic stock dropped to $20.75 a share before closing at $21,625, down 12.5 cents, in New York Stock Exchange trading Wednesday. The acquisitions will add about $1.3 billion to Republic's annual revenue, which already exceeds $11 billion, more than any other Florida-based company. The dealer groups include: First Team Automotive Corp. of Orlando, owner of 17 franchises in central and north Florida, the biggest new car dealer in Orlando and Tallahassee and one of the 25 biggest auto groups in the United States with about $540 million in annual revenue.

Thomas Automotive Group of markets and ranked 15th in the nation in new-vehicle volume by Automotive News with $575 million in annual revenue. Chuck Clancy Ford in Atlanta, the second-biggest Ford dealer in Atlanta with $120 million in sales. Republic already owns the largest, Gene Evans Ford. Star Motors in downtown Fort Lauderdale, a Mercedes dealership with $70 million in sales. Steven Berrard, who shares Republic's chief executive officer title with H.

Wayne Huizenga, said the acquisitions are part of the company's strategy of amassing auto-retailing "districts." "These recent acquisitions add significantly to these districts in some of America's most important automotive markets," he said. The purchase of First Team served the dual result of buying market share while taking a potential rival off the map. First Team had been on the verge of launching an initial stock offering to pay for recent acquisitions and shop for more. Its lead underwriter was heavyweight Merrill Lynch. Unlimited regionwide long distance, $15 a month.

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And few televised programs initially will take advantage of the HDTVs capacity for crystal-clear pictures. The federal government is requiring stations in 10 markets to begin sending out some programming in the new format later this year. But broadcasters are resisting the multimillion-dollar investments required to convert signals to high-definition because they don't anticipate big returns. "Although HDTVs technology is marvelous, it lacks an effective business model," said Paul DiSenso, senior consultant with the media futures program of SRI Consulting, which monitors digital tele vision. Forrester Research estimates that only 100,000 HDTV sets will be sold in 1999, risingto 11.4 million by 2007.

Even the most bullish manufacturers agree that HDTV won't be a mass-market product for years. Still, after more than a decade of hype, digital televisions are expected to dominate the giant Consumer Electronics Show, which opens today. The annual trade show gives retailers their first peek at products that could be big sellers next Christmas season. This year, more than 15 manufac-turers will showcase their first HDTV sets for about 90,000 attend ees from 110 countries. Keynote speakers include HSN Inc.

chief executive Barry Diller and Bill Gates, CEO of Microsoft Corp. Despite slow early sales of high-definition sets, a strong debut at the trade show could mean more purchases later, analysts said. "Companies are viewing their participation now as an investment," said Jonathan Cassell, senior analyst at Dataquest. "This round will establish the technological leaders who will reap the rewards with huge volumes." Handset, long-distance charges, naming fees outside Pouvrtels PCS Senice Area, one-time actuation fee and taxes are extra Credit approval required All calls rounded up to the nearest full minute Subject to Pnuertel Terms and Conditions of Senice Rales subject to change. See participating Pwertel Retailers for details.

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