COMPANY TOWN ANNEX

Viacom May Sue Paramount: In a letter to Paramount Communications Inc., Viacom Inc. formally notified the company that it is reserving the right to sue for the $100-million breakup fee originally negotiated in a friendly merger deal in September. That merger agreement was scrapped Dec. 22 after the Paramount board decided to recommend a QVC Network Inc. bid to its shareholders instead. However, Viacom said it will not pursue the legal action while Paramount is in the midst of its auction.