Adelphia to Sell Assets, Spin Off Phone Unit

Adelphia Communications Corp. said it will sell assets and securities and spin off a telephone business as it reported third-quarter results that missed analyst estimate.

The company also sold $1.1 billion in shares and bonds convertible into stock to raise money to pay down debt.

Adelphia said it had a net loss of $267.2 million, or $1.54 a share, for the latest quarter, compared with a loss of $145.4 million, or $1.06, a year ago, as it increased spending to upgrade its cable systems to accommodate digital TV and fast Internet access.

Cash flow, or earnings before interest, taxes, depreciation and amortization, rose 17% to $357.1 million.

Analysts on average expected cash flow of $375 million, according to Thomson Financial/First Call. Sales rose 23% to $898.6 million.

Shares of Coudersport, Pa.-based Adelphia Communications fell $2.35 to $20.98 on Nasdaq.