Centel Puts Cable TV Unit on Block, Will Focus on Phone Service

Centel Corp. put its cable television unit on the auction block Wednesday, two months after buying out a group of dissident shareholders for $92.5 million and seven months after declaring that it was not selling any of its businesses.

Chairman John P. Frazee Jr. said divestment of Centel Cable Television Co. would allow Centel to concentrate on its telephone operations, which include local exchange service in nine states and a fast-growing mobile cellular communications business that operates in 13 states.

Analysts put the value of Centel Cable at $1.4 billion. Centel said in a statement that proceeds from the sale would be used to repurchase shares and reduce indebtedness.

But Frazee denied any connection between the decision to sell Centel Cable and the more than $850 million that Centel paid out in the past year to extend the reach of its cellular division and fight a takeover battle.