FCC PROPOSAL TO REDUCE NEWS CORP.'S FOX SHARE;DEUTSCHE TELEKOM OPENS MEDIA BUYING REVIEW; NOVELL AND BERTELSMANN TO ANNOUNCE ALLIANCE;SUPREME COURT SIDES WITH COORS ON BEER LABELS; BBDO AND KRESSER STEIN IN STARBUCKS REVIEW;KMART EXPECTED TO NAME NEW CEO SOON;L.A. GEAR REORGANIZES IN-HOUSE ADVERTISING; BATES NAMES NEW EXEC CREATIVE DIRECTOR;TIMES MIRROR REPORTS QUARTERLY EARNINGS;HOYT TACKLES THE TABLOIDS;AMERICA WEST WARNS WHY PAY MORE?;

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WASHINGTON-The Federal Communications Commission staff last week recommended requiring Rupert Murdoch to radically restructure Australia-based News Corp.'s interests in Fox, Electronic Media reported today. Under the proposal, News Corp. would have to slash its 99% interest in Fox to 25%. In a statement, Fox said: "We would be surprised if the commission would follow such a recommendation. If they did, we would fight it at every level."

BEAVERTON, Ore.-Nike will support the May introduction of Air Jordan X basketball shoes in red and white (Chicago Bulls colors) with at least two spots featuring Michael Jordan. The "Just do it" commercials break next week and will address Mr. Jordan's return to the National Basketball Association. Also, Nike has promoted Joe McCarthy from North American ad director to the new post of worldwide ad director.

BERLIN-German state-owned telephone company Deutsche Telekom invited between eight and 10 agencies to pitch its $75 million media buying account, including Initiativ Media, Hamburg; MediaCom, Duesseldorf; and incumbent HMS/ Carat, Wiesbaden. A review of creative agencies-creative is now handled by Lintas, BBDO and Spiess Ermisch & Andere-has not been announced. The media review comes immediately after Ron Sommer became DT's chairman.

ATLANTA-Novell, the world's No. 2 PC software marketer, is expected to announce today a sweeping alliance with German publishing and entertainment giant Bertelsmann AG at the Comdex/Spring computer show here. Bertelsmann's BMG Interactive Entertainment unit will manage marketing, distribution and product localization of Novell's consumer line outside North America.

WASHINGTON-The U.S. Supreme Court, in a decision ad groups said could have a major impact on attempts to regulate advertising, last week unanimously ruled that Coors Brewing Co. has the right to put alcohol levels on its beer packaging. The decision upholds an appellate court ruling that has allowed some brewers to include the information on bottles for several years. Both brewers and ad groups praised the decision.

SEATTLE-Executives close to Starbucks Coffee Co. say two agencies included in the $7 million account review are BBDO Worldwide, Los Angeles, and Kresser Stein Robaire, Santa Monica, Calif. A decision is expected in the summer.

TROY, Mich.-Kmart Corp. is expected to name a new CEO before the company's annual meeting May 23, Crain's Detroit Business reported today. Kenneth Macke, former Dayton Hudson Corp. chairman-CEO, is reportedly interested in the job.

SANTA MONICA, Calif.-Adam Bliebtreu has left financially troubled L.A. Gear as director of advertising/creative services. The company has consolidated creative services at Bright & Associates, Venice; L.A. Gear had been using independent contractors to handle in-house creative duties. Chiat/Day, also Venice, is agency of record. John Wilson, VP-marketing, adds advertising to his title but will share the new responsibilities with Exec VP-Sales & Marketing President Robert Landes.

NEW YORK-Bates USA has named Michael B. Robertson, 47, exec VP-executive creative director, replacing Andrew Cracknell, who left last October.

LOS ANGELES-Times Mirror Co. said revenue for the first quarter increased 5.5% to $774 million but operating profit dropped 26.6% to $24.1 million compared with the same period a year ago.

NEW YORK-Tony Hoyt moved from publisher of Hearst Magazines' Cosmopolitan to senior VP-publisher of National Enquirer and Star as part of a move by American Media, the tabloids' parent company, to pursue new advertising. He is expected to launch American Media's first trade advertising campaign by yearend.

PHOENIX-America West Airlines will launch a $20 million ad campaign this week from new agency Team One Advertising, El Segundo, Calif., that introduces the tagline "It seems silly to pay more." TV commercials attempt to show that America West has all the frills of other airlines at lower fares.

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