Viacom Says QVC Is Cheating

Viacom Inc. on Thursday charged that QVC Network Inc., its rival in the bidding war for Paramount Communications Inc., is cheating by attempting to improve its offer before the contest’s Monday deadline, and it called on Paramount to take “vigorous action.”

Viacom noted that QVC has hinted in recent meetings with securities analysts and traders that it might provide guarantees for the price of the stock portion of its Paramount bid. Those guarantees would come from having one of QVC’s investors, BellSouth Corp., agree to purchase QVC stock in the future, according to published reports. Viacom denounced QVC’s efforts as “a backdoor attempt by QVC to change its offer after the bidders’ Feb. 1 deadline.” Viacom said that, in response, it will consider “all options and remedies.” Paramount had no immediate comment. QVC denied the accusations.