Daily News from New York, New York • 57

IBM 3M CATERPLLAR BOEING PROCTER GAMBLE UNITED TECHNOLOGIES Sinus scores KFL programing deal for Satellite radio $1.97 $93.52 $1.87 $93.98 $2.50 $81.02 83 cents $98.65 98 cents $82.98 Page 59 73 cents $39.93 n2 nzann rn ray mli ddd By PAUL a C0LF0RD DAILY NEWS BUSINESS WRITER In a surprise move that would make for a juicy cover story in New York magazine, hard-charging investment banker "Bid-'em-Up" Bruce Wasserstein emerged late from the sidelines and will buy the weekly for $55 million. "We wish Mr. Wasserstein all the best with New York magazine," spokesman Ken Frydman said on behalf of the Zuck-erman-led group. Specifically, New York Media Holdings, which Wasserstein chairs and is controlled by the Wasserstein family trusts, will buy the mag. The deal is expected to close within a month.

"We believe New York has significant long-term value and growth potential," Wasserstein said in a statement. "It is the leading magazine for successful New Yorkers and we intend to build from this position to enhance this historic franchise and extend the brand." He said Lazard and Wasserstein Co. have no part in the purchase. Media Industry Newsletter editor Steven Conn likened Wasserstein's victory to the impressive, longshot win of Canonero II in the 1971 Kentucky Derby a race the journalist attended. "It's a great trophy for Wasserstein," Conn said.

New York editor in chief Caroline Miller said the staff was pleased "this very long and drawn-out chapter is over." She added: "We're confident these will be very good owners for us. They're smart and seriously committed to investing in the magazine." wasserstein aggressively pursued a deal for the mag after last Thursday's deadline for bids through Allen Co. The investment firm was retained three months ago by debt-strapped Primedia, controlled by Kohlberg Kravis Roberts, to shop the mag, setting off a sweepstakes that generated a buzz in media circles. Wasserstein, 55, the CEO of Lazard and chairman of Wasserstein made his name as a Wall Street dealmak-er in the '80s and '90s, but he's no stranger to publishing. The brother of playwright Wendy Wasserstein, he publishes the New York Law Journal and other legal titles through American Lawyer Media and produces The Deal through U.S.

Equity Partners. In winning New York a more glamorous publication about the city's movers, shakers and cultural swings he beat out two other big contenders. They were American Media, the expansion-driven publisher of supermarket tabloids and the former Weider fitness mags, and a group led by Daily News chairman and co-publisher Mortimer B. Zucker-man. Zuckerman's partners included Miramax Films co-chairman Harvey Wein-stein, Triarc Cos.

CEO Nelson Peltz, advertising exec Donny Deutsch and financier Jeffrey Epstein. r. null i i i jjmijjii nnmim rnYlr''" lit I Calif, pension fund sues NYSE, traders IBfloainnilbeirg TO's nnoviinig ouer ft ES tl. By DANIEL DUNAIEF and NANCY DILLON DAILY NEWS BUSINESS WRITERS The largest U.S. pension fund sued the New York Stock Exchange and seven specialist trading firms yesterday, alleging they bilked investors of some $150 million.

The suit, filed by the The California Public Employees' Retirement System, accuses the defendants of allowing, or engaging in, trading that used inside knowledge of orders to profit ahead of the investing public. It comes as government regulators are set to vote today on the new governance plan for the scandal-scarred NYSE. CalPERS has been a vocal opponent of the exchange's proposed plan, saying it fails to separate the NYSE's regulatory responsibilities from its commercial functions. Governance of the NYSE took Bloomberg is jumping to the home of Stern, "Melrose Place" reruns and "Style Star" just as NBC is about to buy USA as part of its big Universal deaL NBC owns biz news channel CNBC, which competes with Bloomberg TV Bloomberg execs said they were wary of signing a deal with their rival. "How safe would you feel if your competitor was your landlord?" a Bloomberg insider asked.

But Jeff Lucas, president of sales for Universal Television Networks, which oversees USA, said the two sides parted over terms of the deal. "NBC had no influence, it was a business decision," he said. By switching to Bloomberg runs the risk of losing viewers who may have trouble finding it. Bloomberg TV managing editor Marty Schenker said viewers will "find us where we are." center stage back in September when ex-NYSE chairman Dick Grasso cashed out his eye-popping $140 million pay package. Grasso resigned under fire Sept.

17, and interim chairman John Reed unveiled a long list of reforms along with a hand-picked, eight-member board in early November. The NYSE is the "poster child for a failed system of self-regulation," said Sean Harrigan, president of the CalPERS board. "The NYSE not only knew of these rampant problems and the fact that they existed but also perpetuated them." NYSE spokesman Ray Pellec-chia said the exchange does not comment on pending litigation. It was bad news for the specialist trading firms, who are already under investigation for their trading practices. This is the first suit against the NYSE for its role regulating the specialists.

1( By PHYLLIS FURMAN DAILY NEWS BUSINESS WRITER Howard Stem and the Dow are about to share the same spot on the cable dial. Stocks and bonds net Bloomberg TV is moving to celebrity scandal-filled Entertainment Television after seven years on the USA Network, Bloomberg execs told the Daily News. The channel owned by Mayor Bloomberg leases a three-hour block starting at 5 a.m. weekdays from USA, and sells the commercial time. As of Jan.

1, Bloomberg TV will do the same on where it will replace infomercials and "The True Hollywood Story." The new deal cost $30 million over three years, sources said. "We think it's a better fit," said David Wachtel, who heads Bloomberg Media. has a more upscale audience." BLOOMBERG NEWS Sean Harrigan, Calpers president, at press conference in California announcing suit..