Adelphia Stock Climbs As Takeover Bids Come Due

Jan 31, 2005  •  Post A Comment

Shares in Adelphia Communications rose as much as 9 percent Monday, the same day that bids for the bankrupt cable company were due from as many as 10 interested parties, including a joint offer from cable titans Comcast and Time Warner.

Shares in Adelphia closed up nearly 6 percent at 37 cents during a day that saw nearly eight times the trading volume of a typical day for the stock.

Published reports had the joint offer by Comcast and Time Warner as one of two bids expected for the entire cable company, which has around 5.3 million subscribers and went into bankruptcy protection in 2002 after an accounting scandal involving members of the Rigas family, which founded the company.

The other suitor expected to bid for the entire company is a partnership between private-equity firms Kohlberg Kravis Roberts and Providence Equity Partners.

The other bidders are said to be looking at pieces of the company, which said it would accept offers for either the entire company or particular clusters. The company is expected to fetch as much as $19 billion, though several observers believe the price will fall far short of that figure.