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September 25, 1993|From Times Staff and Wire Reports

Shareholder Sues Paramount Over "Lockup" Deal: Mildred Magne has filed a class action lawsuit against Paramount Communications Inc., challenging the studio's lockup agreement with Viacom Inc. Under terms of its merger agreement with Paramount, Viacom gets a $100-million payment if Paramount accepts a higher offer from a third party. Paramount has received a higher offer from QVC Network. Magne charged that Paramount directors "breached their fiduciary duties" to Paramount shareholders by agreeing to the lockup agreement and by "failing to conduct an open and fair auction for Paramount and by failing to seriously consider the QVC offer." Paramount directors are scheduled to meet Monday and are expected to consider the QVC proposal.

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