AT&T; Sued Over Dominance of Excite’s Board

Sheldon Pittleman, an Excite@Home Corp. shareholder, has filed a suit in Delaware state court claiming that the company’s controlling shareholder, AT&T; Corp., is interfering with the Internet provider’s operations to gain competitive advantages in the online services industry. Pittleman asks a judge to lift restrictions on Excite@Home’s board that give AT&T; officials veto power over any significant business move by the provider of high-speed Net access via cable TV lines. AT&T;, soon to be the leading U.S. cable TV firm, owns a 26% stake in Excite@Home and controls 58% of the shareholder voting rights. AT&T; officials said they had not seen a copy of the suit. @Home acquired Net search service Excite earlier this year for $8.26 billion. AT&T; acquired its stake in Excite@Home through its purchase of cable TV giant Tele-Communications Inc. Excite shares rose 31 cents to close at $43.13 on Nasdaq, and AT&T; eased $1.06 to close at $44.69 on the NYSE.