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Viacom Says President Sold 700,000 Shares

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Bloomberg News

Viacom Inc. said President Mel Karmazin sold 700,000 of the company’s Class B shares, his first stock sale since joining the third-largest media company last year.

Karmazin owned 4.46 million shares as of April and has options to buy 5 million more, according to a recent filing with the Securities and Exchange Commission.

Karmazin’s share sale could be taken by investors to indicate further pessimism about the profit outlook for Viacom, an analyst said.

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Viacom spokesman Carl Folta declined to comment on why or when Karmazin sold the shares.

Viacom’s Class B shares, which have dropped 29% in the past year, fell $1.29 to $50.60. At that closing price, the shares Karmazin sold would have been worth $35.4 million.

He notified the Securities and Exchange Commission of his intention to sell Thursday, according to Washington Service, which tracks stock transactions by company insiders.

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