Trib says AT&T overstepped its rights

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Managers of the Salt Lake Tribune argued Tuesday that AT&T Broadband used rights to the newspaper it didn't legally own as "currency" in an agreement with the Deseret News.

The allegations came in final arguments before U.S. District Judge Tena Campbell, who is presiding over a hearing on the Salt Lake Tribune Publishing Co.'s motion for a preliminary injunction to halt AT&T's sale of the newspaper to Denver-based MediaNews Group.

Campbell was to hear from AT&T and MediaNews attorneys late Tuesday and rule on the motion possibly this week.

The publishing company, which manages the Tribune, contends the sale violates an option agreement that would allow the newspaper's former owners to buy the newspaper after July 2002. They sold the newspaper to Tele-Communi-cations Inc. in a tax-free stock swap in 1997 valued at more than $700 million. AT&T acquired TCI and the Tribune last year.

James Lowrie, attorney for the Tribune managers, said that under that agreement and a joint operating agreement the newspaper has with the Deseret News, only his clients can negotiate the particulars of shared presses, advertising and circulation.

"(These agreements) do not permit (AT&T) to use our rights. . . as currency with the Deseret News to get the Deseret News to go away," Lowrie said.

In recent years the Deseret News has become increasingly concerned over what it says is the domination of the equal partnership in the JOA by the Tribune and its unwillingness to support the Deseret News' conversion to morning publication. The Deseret News has threatened to sue to resolve its differences with the Tribune.

Campbell repeatedly interrupted Lowrie's closing remarks, questioning him on how his arguments related to the injunction.

"They (AT&T) haven't yet denied you (Tribune managers) the option (to buy), right? That's premature. And there has been no interference in your management rights. So tell me how that fits in. I'm not understanding," Campbell said.

Lowrie answered that AT&T asked MediaNews President Dean Singleton to "reach a deal with the Deseret News" over the disputes in the JOA.

At Singleton's request, the Deseret News did provide him with the conditions it would request a new owner to fulfill.