Daily News from New York, New York • 1015

ID est huv a7m it? rremi CORP. TV superstar Regis Ffcflbfn TnsKsceni- ttisssscs5 ssretmi CHRYSLER ONLINE WUtNER Zp- -2 316 -14 -316 $53.93 $53.25 $78.81 Eto pen TJho Uznts to be 1316 $62.56 158 $45.56 -158 $6.68 IMMgM ft mi Judge's decision could come as ft krnti' ft i By RACHEL SCHEER DMty NEWS BUSINESS WRITER Microsoft held its ground yesterday opposing the government's plan to break it apart, setting the stage for a federal judge to imminently issue his decision in the epic anti-trust case. Bill Gates Co. called the government's most recent proposal to divide it into two parts "defective" and "vague." "It remains Microsoft's firm belief that the relief requested by the government is extreme and unjustified," the company said in yesterdays filing. Judge Thomas Penfield Jackson, who ruled in April that Microsoft was an illegal monopoly, could issue his prescription as soon as today for preventing the world's largest software company from engaging in future anticompetitive behavior.

The latest rebuttal from Microsoft included revisions to the government's plan to split the company in two, with one company selling its popular Windows operating system and the other selling all other products. Microsoft, which filed its proposal after the close of the stock market, asked for a year to break itself in two. The company's stock slipped yesterday to $62.56, just $2 above its 52-week low of $60.37 and barely half of its 52-week high of $119.93 reached last December. This is another effort to posture for appeal," the Justice Department said in a statement issued after Microsoft's filing yes- I Microsoft head Bill Gates is battling to keep company intact and ward off regulators' breakup plan. remains Microsoft's firm that the relief requested by the is extreme and unjustified." COMPANY HUNG early as today The list of likely witnesses ranged from economics professors to executives at other companies who Microsoft said would oppose a break-up, including entertainment mogul Jeffrey Katzenberg of DreamWorks and Michael Kapellas of PC giant Compaq.

During a hearing last week, Jackson showed signs of favoring a radical break-up, praising the idea of going a step further and dividing the company into three rather than two parts, as proposed by the Justice Department and 17 states. The judge remarked at the hearing that splitting the company in two would only create two separate monopolies. Complying with the judge's request, the government ted a finalized proposal late last week, which included only minor technical changes to its original plan. Microsoft has steadfastly insisted that a split would be an unfairly drastic measure that in the end would only harm consumers and the rest of the software industry. It has instead proposed various changes to its business practices.

Jackson rejected Microsoft's re- quest to delay considering a breakup plan for six months to allow more time to prepare a rebuttal, a move that surprised some le James Murdoch goes from co-chairman to chairman of News Corp. unit StarTV. 1995 and still runs News music businesses. James' brother Lachlan, 28 long seen as Rupert Murdoch's heir to the throne runs News Australian operations. James' sister Elizabeth recently stepped down from her post at British Sky Television to start a company focusing on TV, film and new media.

"It belief government gal experts. The company promised to bring that issue up on appeal, Judge Thomas Penfield Jackson has final decision in ending anti-competitive activities. terday. The filing does not come to grips with the fact that Microsoft has been found to have repeatedly engaged in serious legal violations, and serious remedies are required to restore competition and prevent similar violations in the future," the government said. In yesterday's filing, Microsoft outlined a list of witnesses it would have called if the judge had granted extensive hearings on anti-trust remedies, as the company requested.

"It was Microsoft's position and understanding that the hearing on May 24, 2000, was to be the beginning not the end of proceedings on the issue of relief," the company said. James, who is set to move from New York to Hong Kong to take the new post, has already been functioning as his father's digital chief, leading Star TVs push into new media by investing more than $150 million in Asian dot-com companies. "Most of his experience has been in multi-media and the Internet," said Richard Read, a media analyst at Credit Lyonnais. "One of the biggest thrusts for satellite television is the Internet and interactive television." Before heading to Star TV, James ran News interactive publishing division, News Digital Media. He also served as deputy publisher of the New York Post James dropped out of Harvard to launch independent record label Rawkus Entertainment in Coliseum project developer bags 1.3B construction loan dupe's youngest son heads Asian operation which will likely extend the case for months, even years, some experts said.

With Jackson apparently ready to issue his final order at any time, the company has postponed an event scheduled today to launch its Next Generation Windows Services, which will make Microsoft software and data available through the Internet to devices like cell phones and handheld organizers. The project centers on twin office towers. The headquarters of the proposed combination of AOL Time Warner will occupy one of the towers, which the company will own as a condominium. The project also will house the New York operations of Time Warner's CNN and NY1 cable networks. Related also plans 325,000 square feet bf retail space, 375 condos, a 425-room Mandarin Hotel, a 12-theater multiplex, a jazz concert hall and an international food court.

In 1998, Related and its partner, financier Leon Blacks' Apollo Real Estate Advisors, beat out a number of other prominent developers including Donald Trump and Tishman Speyer Properties in a protracted battle for the right to develop the site. 5 By ROBERT BURGESS BLOOMBERG Mega-developer Related Cos. won a $1.3 billion construction loan for the redevelopment of the New York Coliseum into the new corporate headquarters of AOL Time Warner. The massive project also will house a jazz hall for Lincoln Center, as well as apartments, a hotel and retail space. The financing, provided by GMAC Commercial Mortgage is the largest ever for a New York development.

Construction is expected to start this year after demolition of the current structure is completed. Calling it the "Rockefeller Center of the 21st century," Related CEO Steve Ross and Time Warner officials unveiled their plan to redevelop the Coliseum at Columbus Circle almost two years ago. By PHYLLIS FURMAN OAUf NEWS BUSINESS WRITER Rupert Murdoch's youngest son, James, has become the star of his father's massive Asian satellite TV and multi-media service. James, 27, is moving up the ranks from interim co-chairman to chairman of Hong Kong-based Star TV, a division of Murdoch's media empire News which beams entertainment, news and sports programing to 300 million viewers across Asia. The promotion makes James a key point man in his father's attempts to execute a digital strategy.

Star TV is set to become part of Platform a new company Murdoch hopes to sell stock in that will consolidate News new media businesses. io. H. to.