COMPANY TOWN ANNEX

Viacom Issues New Securities: Because its stock price has been increasing, Viacom Inc. said it will be issuing only a fraction of the 39 million Class B common shares it potentially was on the hook to issue as part of its $8.4-billion acquisition of Blockbuster Entertainment Corp. in 1994. Viacom said it will issue 6.4 million shares. The clause was built into the deal as a safety net for Blockbuster stockholders, who at the time of the deal were concerned that the value of Viacom stock they were receiving could drop with Viacom’s buying both Blockbuster and Paramount Communications Inc. The number of shares was determined by Viacom’s average stock price of slightly more than $50 in the 30-day period ended Thursday. Under the deal, had New York-based Viacom’s stock price traded above $52 in a 30-day period prior to Thursday, no shares would have been issued.