U.S. Probes Adelphia’s Deals With Motorola

Motorola Inc. has been contacted by federal authorities investigating Adelphia Communications Corp. over transactions that may have been used by Adelphia to inflate revenue.

The Securities and Exchange Commission and the Justice Department have contacted Motorola officials to discuss the sale of tens of millions of dollars in set-top digital boxes to the cable television company, Motorola spokeswoman Jennifer Weyrauch said.

Investigators want to know how Adelphia wound up counting a $25-per-box rebate on the boxes as profit, she said.

Officials at the SEC and Justice Department did not immediately return calls seeking comment.

Shares of Motorola rose 20 cents to close at $12 on the NYSE.