June 30, 1997

Analysis of AT&T's future following breakdown of merger talks with SBC Communications Inc; fact that talks were held at all seen as AT&T's acknowledgment that it is wary of competing on its own in deregulated market; company's peculiar handling of negotiations may have tarnished both its credibility and morale; financial logic of a merger is so compelling that many experts expect AT&T to try to resuscitate talks with SBC; failing that, AT&T could try to forge deal with another regional Bell company, like BellSouth, or with GTE; photo (M)

Fire destroys fabled Oyster Bar and Restaurant at Grand Central Terminal; general manager Mark Abrahamson, saying that damage looks much worse than it actually is, will reopen; photo(M)

Construction on $16.5 million pier complex in Middletown for ferry service that should reduce commuting time to Wall Street is expected to begin in month or two (New Jersey Daily Briefing) (S)

Heavyweight boxer Mike Tyson could face many legal and professional problems for biting ears of Evander Holyfield during title bout in Las Vegas that caused his disqualification after he ignored warning from referee; has been suspended by Nevada State Athletic Commission and may lose part of $30 million purse, which is being withheld indefinitely; faces possible suit by Holyfield, as well as action from state of Indiana, where he was jailed on rape conviction and is still on parole; punch at policeman during post-fight melee could be viewed as violation of parole, if charges are brought; photos (M)

Joe Warshowsky runs lucrative live pornography site on World Wide Web called Video Fantasy, where young women disrobe and pose for digital voyeurs who pay service $5.95 a minute; pornography has become one of Internet's main growth engines, with as many as 10,000 Web sites; trade publications see it as $1 billion business; Warshowsky says Video Fantasy verifies age of each of its 20,000 customers, to keep minors away; photo (M)