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To: Dealer who wrote (3891)	9/27/2000 8:11:23 AM
From: Dealer	Respond to of 65232

GMST--News looks to buy Liberty GemStar stake (UPDATE: adds analysts' comments paras 5-6, 15) SYDNEY, Sept 27 (Reuters) - Media giant News Corp Ltd said on Wednesday it was negotiating with John Malone's Liberty Media Corp (NYSE:LMGa - news) to buy its stake in electronic television guide maker GemStar-TV Guide International Inc (NasdaqNM:GMST - news). ``The company confirms that it is in negotiations with Liberty Media Corporation for the acquisition of Liberty's stake in GemStar-TV Guide International Inc, but that the negotiations have yet to be finalised,'' News Corp (NYSE:NWX - news) said in a statement to the Australian Stock Exchange. The one paragraph statement from Rupert Murdoch's News Corp came after news reports in the United States this week said Murdoch and Malone were discussing a complex deal which would strengthen their ties, including lifting Liberty Media's stake in News Corp to 20 percent from eight percent. The reports drove News Corp shares up earlier in the week, and its shares closed three percent higher on Wednesday at A$25.34 after hitting a high of A$25.54. The share price reaction reflected two prizes which News Corp stood to win -- a bigger stake in GemStar for News Corp's Sky Global Networks and a strong endorsement from Liberty Media, a highly respected cable company. ``Terms are critical, because if Liberty's equity in News Corp ends up going up significantly, then people would take a lot of comfort from that,'' said Salomon Smith Barney analyst George Colman. News Corp wants Liberty Media's 21 percent stake worth US$6 billion in GemStar to roll into its existing 20 percent stake in the maker of interactive television guides. The enlarged holding would deliver key assets, notably proprietary digital technology, to Sky Global Networks, which News Corp is set to spin off later this year. Analysts have said the stronger link with Liberty Media would also put News Corp in a better position to bid for Hughes Electronics Corp (NYSE:GMH - news), which General Motors Corp (NYSE:GM - news) is expected to put up for sale within months. News Corp has been touted among many others as a likely buyer of Hughes for its DirecTV satellite company. POSSIBLE ROLE FOR AT&T ABN AMRO said this week in a report repeating its buy recommendation on News Corp that the benefits of the reported deal under discussion with Liberty Media and the possible acquisition of Hughes were not totally clear yet. The broker report said there was probably more to the deal which had not been revealed, possibly involving Liberty Media's parent, AT&T Corp (NYSE:T - news), the largest U.S. telephone and cable TV company. AT&T's involvement would put News Corp in a stronger position to satisfy what GM was looking for in a sale of Hughes Electronics -- cash and a quality earnings stock -- while Sky Global Networks content would help AT&T. ``It would also be an important strategic investor for News; but if it carried the content for SGN on its long distance, mobile and cable TV networks (complementing DirecTV's satellite delivery) it would certainly boost traffic utilisation,'' ABN AMRO said, referring to AT&T's potential role. But analysts said any direct AT&T involvement would raise competition issues with regulators.

To: Dealer who wrote (3891)	9/27/2000 8:17:10 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

EUROPE--U.S. stocks seen bouncing as techs firm in Europe LONDON, Sept 27 (Reuters) - Wall Street, which has been reeling from a spate of profit warnings, looked set for an early bounce on Wednesday as technology shares firmed in European trading. Investors found some encouragement after Tuesday's official trading hours as computer networking equipment maker 3Com Corp (NasdaqNM:COMS - news) reported a first quarter operating loss smaller than analysts' expectations. Its shares were traded at $16-1/2 in Europe, edging up on levels seen after hours in New York and sharply higher than their official close of $13-15/16. ``Everybody's going to look for some sort of retracement of yesterday's losses,'' American Express Bank market strategist Gerry Celaya said, but added that the bounce could prove short lived as earnings warnings were still clouding the horizon. Another dealer reflected the nervous mood. ``Every morning, its a question of who has put out a profit warning,'' he said. By 1056 GMT, December Standard & Poor's 500 index futures were up 6.5 points at 1,449.50, while fair value was quoted at 1,444.49, indicating a firm start for the Dow Jones industrial average. Nasdaq composite index futures were up 42.5 points at 3,659.0, while fair value was quoted at 3,635.13, also suggesting an early bounce. The Dow ended Tuesday's session down 176.83 points or 1.6 percent, while the Nasdaq dropped 52.12 points or 1.4 percent. Among technology stocks, U.S. computer chip maker Intel Corp (NasdaqNM:INTC - news) edged up to $44-1/8, compared with its New York close of $43-5/16, while International Business Machines Corp (NYSE:IBM - news) was quoted at $120-3/8 compared with its $119-5/16 U.S. close. ``This morning the market has got a much better feel to it. A few buyers have returned. This is the best it is has been for a week or so now,'' said one dealer. Eastman Kodak Co (NYSE:EK - news), hammered on Tuesday after becoming the latest firm to issue an earnings warning, edged up in European trading. Its shares were quoted at $45-1/2 against their New York finish of $44-3/8.