Capstar turns off radio buys

Company heeds federal antitrust warnings

By CHRISTOPHER STERN

WASHINGTON -- Due to objections from federal antitrust officials, Capstar Broadcasting Partners dropped its plan to acquire two radio stations in Texarkana, Texas.

Justice Department lawyers argued that Capstar's plan to buy KATQ Radio, which owns KTWN-FM and KTFS, would have reduced competition in Texarkana. Capstar owns five radio stations in Texarkana.

"If the acquisition had gone forward, businesses that rely upon radio to sell their products would have had to pay more to advertise," said Joel Klein, assistant attorney general for antitrust.