Business & Finance: Atlas in RKO

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Problem child for Radio Corp. of America has been Radio-Keith-Orpheum, theatre and cinema-producing company in the courts since February 1933. Last week David Sarnoff, short, round-faced head of Radio Corp. said, in effect, to his troublesome corporate offspring: "Go and never darken my door again." But the orphan was not put out into any storm. Waiting to receive it was Floyd Bostwick Odium's Atlas Corp. which, together with Lehman Bros., Manhattan banking house, bought an unspecified portion of RCA's holdings in RKO stocks and debentures. What Atlas and Lehman paid for their purchase was equally unstated but, inasmuch as the deal carried an option to buy whatever RKO securities Radio Corp. may still hold, the transaction may result in a complete shift of RKO parentage. If the Atlas-Lehman combination takes up its option, it will have a very firm grasp on orphaned RKO, since before last week's sale Radio Corp. owned 48^ of RKO common and 84% of an $11,600,000 debenture issue.