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Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: 100cfm who wrote (6201)	2/6/2003 7:36:34 PM
From: straight life	Respond to of 6516

UPDATE - U.S. settles antitrust case against Gemstar Thursday February 6, 3:58 pm ET (Adds background, detail from settlement, stock price.) WASHINGTON, Feb 6 (Reuters) - The U.S. Justice Department said on Thursday it had settled antitrust charges against Gemstar-TV Guide International Inc. (NasdaqNM:GMSTE - News) after the company agreed to pay a fine of $5.67 million. The department said it had reached a consent decree settling allegations that Gemstar illegally coordinated operations with TV Guide before it merged with Gemstar in July 2000. Under U.S. antitrust laws, merger partners must continue to operate independently until their deal is consummated and cleared by federal regulators. Coordinating operations beforehand is a violation known as "gun-jumping." In a statement released with the settlement, the department's antitrust division said the fine to be paid by Gemstar is the largest ever in gun-jumping case and reflected the maximum penalty possible under U.S. antitrust law. A representative of Gemstar was not immediately available for comment. The investigation began shortly after the Justice Department approved the $14 billion merger of Gemstar and TV Guide. Before the merger, the two companies had been competitors in providing interactive program guides to cable and satellite television companies. According to the department, the trouble started in mid-1999, when the two still-separate companies were planning a joint venture. The two "agreed to stop competing for customers, decided together on prices and terms to be offered, and jointly managed their interactive program guide business," the department said. "A plan to merge in the future does not justify price-fixing, customer allocation, or otherwise combining their businesses, while the Justice Department is investigating the competitive effects of the transaction," R. Hewitt Pate, the department's antitrust chief, said in a statement. Under terms of the settlement, customers that signed contracts with TV Guide before the merger will be allowed to rescind their deals, the department said. Gemstar shares were up 11 cents, or 3.7 percent, late Thursday, at $3.05. (Reporting by Peter Kaplan, editing by David Gregorio; peter.kaplan@reuters.com, Washington newsroom 202 898-8463, fax: 202 898-8383) biz.yahoo.com