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Adelphia Provides Some Details of Sale Process

Aug 6, 2004  •  Post A Comment

Adelphia Communications on Friday outlined a plan for the sale of the bankrupt cable operator to take place by the end of the year and expressed a willingness to entertain offers for the entire company or select cable clusters.

Sale of the company, which has been in bankruptcy following disclosures of financial malfeasance by founder John Rigas and his family, is expected to be a hotly contested race between some of the biggest names in cable. Among the likely suitors is Time Warner and the No. 1 player in the sector, Comcast.

Some analysts predict Adelphia as a whole could fetch nearly $20 billion for the assets of the company, which operates in 30 states and has around 5.4 million subscribers.

As part of its plan, Adelphia officials said, they anticipate starting the sales process sometime after Labor Day. The company has a court date later this month to win bankruptcy-court approval for its engaging UBS Investment Bank and Allen & Co. to advise the company in a sale.

UBS and Allen & Co. are expected to provide information memoranda to potential bidders following the court approval of the two investment banks, with bidders slated to submit preliminary indications of interest by October and the a buyer to be selected by the end of the year.