Stewart meets with probation officials

By Erin McClam
Associated Press

Martha Stewart returned to federal court in Manhattan yesterday for a meeting with officials who will recommend how long she should serve in prison for lying about a stock sale. Associated Press

Stock in Stewart's namesake empire slid another 8 percent and the board of Martha Stewart Living Omnimedia gathered in Manhattan to discuss life without the domestic entrepreneur.

The probation meeting is the first step toward sentencing. While lawyers did not comment on what took place at the meeting, newly convicted defendants typically give basic information about themselves.

Stewart was convicted Friday along with stockbroker Peter Bacanovic. Both are expected to get 10 to 16 months in prison when they are sentenced June 17.

"I want to thank my readers, my viewers and the Internet users," Stewart said as she stepped into a sport utility vehicle. "I just want to thank everyone for their support."

Stewart was convicted of conspiracy, making false statements and obstruction of justice in connection with her sale of almost 4,000 shares of ImClone Systems stock shortly before the biotechnology company announced bad news and the shares plummeted.

The remarks were her second since being convicted. As Stewart left the courthouse after the verdict Friday, the Daily News asked her to comment on the fairness of the trial.

"The unfairness of the trial, that's the right comment," she replied.

The board of directors of Martha Stewart Living met yesterday to discuss her fate, according to a source close to the company who spoke on condition of anonymity. Company officials declined to comment, and it was unclear whether the board took any action.

Stewart stepped down as chief executive and chairwoman of the board last June after being indicted but remains as chief creative officer and a member of the board.

With her conviction, the government likely will press to have Stewart removed from the board, but the big question is how involved in the company she will be. Her name, tainted by the verdict, is stamped on products from TV shows to magazines and merchandise.

Stewart did step down from the board of cosmetics giant Revlon Inc. yesterday, Revlon spokeswoman Catherine Fisher confirmed. She would not comment further. Stewart had served on Revlon's board since 1996.

Stewart's syndicated television show, "Martha Stewart Living," was taken off the air yesterday on Viacom-owned CBS and UPN stations.

There was no immediate word about the show's future from King World, the show's syndicator, but the Viacom-owned stations in major media markets were considered its most important customers, said Bill Carroll, an expert on syndication for Katz Television.

Shares of Stewart's namesake company, Martha Stewart Living Omnimedia Inc., fell 96 cents to close at $9.90 on the New York Stock Exchange adding to a nearly 23 percent tumble on Friday after the verdicts.

The stock had traded at about $19 a share before Stewart's name surfaced in the ImClone investigation. Stewart owns about 30 million shares of the company, an approximate 61 percent stake.