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TV superstar Regis Philbin CORP. pen 'Who Wants to be 1 1 Page 41 $62.56 $45.56 $6.68 Microsoft fighting Judge's decision could come as early as today By RACHEL SCHEIER DAILY 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 yesterday's 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 13 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- 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. Rupe's youngest son heads Asian operation By PHYLLIS FURMAN James, who is set to move DAILY NEWS BUSINESS WRITER from New York to Hong Kong to Rupert Murdoch's youngest take the new post, has already son, James, has become the star been functioning as his father's of his father's massive Asian sat- digital chief, leading Star TV's ellite TV and multi-media ser- push into new media by investvice. ing more than $150 million in James, 27, is moving up the Asian dot-com companies.

ranks from interim co-chairman "Most of his experience has to chairman of Hong Kong- been in multi-media and the Inbased Star TV, a division of Mur- ternet," said Richard Read, a medoch's media empire News dia analyst at Credit Lyonnais. which beams entertain- "One of the biggest thrusts for ment, news and sports program- satellite television is the Internet ing to 300 million viewers across and interactive television." Asia. Before heading to Star TV, The promotion makes James James ran News interaca key point man in his father's at- tive publishing division, News tempts to execute a digital strate- Digital Media. He also served as Star TV is set to become part deputy publisher of the New gy. of Platform a new company York Post.

Murdoch hopes to sell stock in James dropped out of Harvard that will consolidate News to launch independent record new media businesses. bel Rawkus Entertainment in godut. CHRYSLER ONLINE WARNER 2 $53.93 $53.25 $78.81 to end 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 resubmitted 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 request to delay considering a breakup plan for six months more time to prepare a move that surprised James Murdoch goes from "It remains Microsoft's firm belief that the relief requested by the government is extreme and unjustified." COMPANY FILING LOOKING FOR A BREAK Microsoft head Bill Gates is battling to keep company intact and ward off regulators' breakup plan. 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. to allow a rebuttal, some le- 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. gal experts. The company promised to bring that issue up on appeal, Coliseum project developer bags 1.3B construction loan 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. 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 of 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..