Adelphia Allows Joint Bid by Comcast, Time Warner

Adelphia Communications Corp., the largest U.S. cable television operator in Southern California, signed an agreement with Time Warner Inc. and Comcast Corp. that allows them to make a joint bid for its assets, Adelphia spokesman Paul Jacobson said Monday.

Comcast, the world’s No. 1 cable TV operator, and Time Warner last month said they were considering making a bid together. The companies may want to use systems acquired from Adelphia to end Comcast’s ownership of a 21% stake in Time Warner’s cable unit.

A joint bid would prevent Comcast and Time Warner from paying too much by competing with each other for the company, according to analysts.

Adelphia Chief Executive Bill Schleyer is auctioning the Greenwood Village, Colo.-based company’s assets to repay creditors seeking nearly $20 billion.

Nationally, Adelphia is the fifth-largest cable TV provider.

Shares of Time Warner, which owns the second-largest U.S. cable TV operator, fell 3 cents to $16.25 on the New York Stock Exchange. Comcast shares rose 20 cents to $28.04 in Nasdaq trading. Shares of Adelphia fell 4 cents to 26 cents in over-the-counter trading.

More than 40 confidentiality agreements have been signed by entities interested in buying all or some of Adelphia’s assets, which are estimated to be worth $17 billion to $21 billion.

The company may select a winning bidder by the end of the year, allowing it to seek court approval of a sale in early to mid-2005.

Founder John Rigas, 79, and son Timothy, 48, were convicted in July of conspiracy and fraud for looting Adelphia and lying about corporate finances before the company filed for bankruptcy protection.