Adelphia in Talks to Hire Management Team

After months of searching for a cable veteran to help it emerge from bankruptcy, troubled Adelphia Communications Corp. is in serious negotiations to hire away the top management team from AT&T; Broadband, the nation’s leading cable provider.

Adelphia, the largest cable television operator in Southern California, has offered the job of chief executive to William Schleyer, who currently holds that title at AT&T; Broadband, and has asked his No. 2, Ron Cooper, to become chief operating officer, according to people close to the negotiations.

Schleyer would replace Erland Kailbourne, who has been interim CEO of Adelphia since May, when founder John Rigas and his three sons relinquished control of the company amid an accounting scandal.

Rigas, two of his sons and two other executives were indicted this summer on criminal charges of bank and securities fraud for allegedly looting Coudersport, Pa.-based Adelphia of about $3 billion. Adelphia was forced into bankruptcy, and under Kailbourne’s leadership it has been searching for a top cable executive to turn the company around as well as restructure its $20 billion in debt.

Neither AT&T; nor Adelphia would comment on the negotiations. But people close to Schleyer and Cooper say they have been telling some members of their staff in recent weeks that they could all end up working for Adelphia after AT&T; Broadband is sold to rival Comcast Corp. That transaction is expected to win regulatory approval this week.

Schleyer, Cooper and several other top managers are among the 1,700 employees at AT&T; Broadband headquarters in Denver who will lose their jobs after the merger.

Schleyer and Cooper were hired by AT&T; Broadband only a year ago to revive the troubled cable company and provide additional leverage to help fend off a hostile takeover by Comcast. AT&T; Broadband still is losing subscribers and suffers from low operating profit margins.

But the team did restore Wall Street confidence in the cable company, giving AT&T; Broadband more leverage in negotiations with Comcast that ultimately produced sweeter terms.

Adelphia shares many of the same operating challenges as AT&T.; Adelphia risks losing customers to satellite TV rivals because it has been slow to upgrade its networks with advanced digital technologies that result in clearer pictures, services like video on demand and more choices of channels.

Adelphia has had trouble recruiting top industry executives because its home base is in a remote rural outpost several hours south of Buffalo, N.Y.

In early discussions with Adelphia, Schleyer proposed moving the company’s headquarters to Denver, according to several people close to AT&T.; But Adelphia sources say the proposal is off the table.

Schleyer and Cooper have a long history together. Both executives worked in top management at Boston-based Continental Cablevision and then at Media One Group Inc. after it bought Continental. Schleyer and Cooper both left Media One after the company was purchased by AT&T; Broadband. They returned to AT&T; Broadband as a team.

The two executives could sign contracts with Adelphia within a week or two, according to sources close to the situation.