Cap Cities Looking to Major Acquisition: Capital...

Cap Cities Looking to Major Acquisition: Capital Cities/ABC Inc. executives said they are in the market for a major acquisition. “We are always looking for an elephant,” Chairman Thomas Murphy said after the company’s annual shareholders meeting in New York. Cap Cities, which historically has grown by acquiring other companies, now needs to make big acquisitions to speed earnings growth, Murphy said. President Daniel Burke said the company’s media business has picked up in recent weeks, “but it may not be enough to preclude some earnings decline in the second quarter,” he said. Profit in the first quarter plunged 45% due to an advertising recession.