TCI Considers Revaluating Deals to Buy Viacom Units

Tele-Communications Inc. may revaluate two pending deals worth nearly $3 billion to buy Viacom Inc.’s cable television systems and another smaller system, the company’s chief executive said Friday.

Changes in federal law and the company’s stock prices are the driving forces, Brendan Clouston, TCI president and chief executive, told reporters in a telephone news conference.

TCI is negotiating with Viacom Inc. about purchasing its cable systems worth $2.3 billion and Chronicle Publishing Co. about purchasing a $600-million system.

“Discussions will continue and perhaps there will be an agreement on a new pricing and value, perhaps not,” Clouston said of the Viacom deal.

Viacom had agreed earlier this year to sell its cable systems to a minority-led group that included TCI. But Congress passed legislation rescinding a tax break for Viacom that was key to the deal.

Viacom and affiliates of Tele-Communications were hoping they can reshape and revive their agreement.

Of the deal with Chronicle, Clouston said the company will not pursue it at current stock prices. On Friday TCI’s Class A stock increased 43.75 cents to $19.375 on Nasdaq.

In other issues, Clouston said expenses on cable-system upgrades will be tied to revenue this year as TCI positions itself for a future in telephone services.