Adelphia to Spin Off Business Phone Unit

Adelphia Communications Corp., the second-most indebted cable television operator, will spin off its Adelphia Business Solutions Inc. phone unit in the form of a dividend to reduce debt.

Holders of Adelphia Communications Class A common shares will receive about one-half of an Adelphia Business Class A common share for each Adelphia Communications share. The dividend is payable Jan. 11 to shareholders as of Jan. 8. Adelphia Communications last month said it would spin off the unit.

The family of Chairman John Rigas, which owns all of Adelphia Communications’ Class B common shares, will receive Adelphia Business Class B common shares and hold a majority of Adelphia Business, Adelphia Communications said.

In Nasdaq trading, Class A shares of Coudersport, Pa.-based Adelphia Communications jumped $1.96 to $29.76, and Adelphia Business, also based in Coudersport, fell 13 cents to 46 cents.