Viacom to redeem $600 mil in stock

Company announces re-purchase increase

By RICHARD MORGAN

NEW YORK -- Viacom Inc. announced plans Monday to liquidate a series of preferred stock held by Bell Atlantic Corp. and to increase its stock-repurchase program to $2 billion from the $1.75 billion in place since August.

Bell Atlantic originally held all $1.2 billion in Viacom's Series B preferred stock but liquidated $600 million on Dec. 2.

According to Monday's announcement, the telcom's remaining $600 million in the Viacom series will be redeemed for $612 million in cash and accrued dividends. The transaction is slated for completion next month.

New York-based Viacom, with such properties as Paramount, MTV Networks and Blockbuster, said that "to accommodate the redemption" it would bump up its commitment to buying back its own securities by $250 million.

Viacom's common stock fell 1.6% Monday to close at $70.75 a share.