Time Warner Eyeing Adelphia

Time Warner Inc., which is seeking to expand its cable television business, plans to take a hard look at buying cable operator Adelphia Communications Corp., Time Warner Chief Financial Officer Wayne Pace said Thursday.

“I will tell you that we are interested in the cable business,” Pace said at an investment conference in Washington. “It’s a high-growth business for us. We will take a hard look at Adelphia’s business when the materials are available.”

Time Warner Chief Executive Richard Parsons said in May that the New York-based company might make a bid for Adelphia to expand its cable television unit, which has 10.9 million subscribers.

Time Warner ranks second only to Comcast Corp., the world’s largest cable operator, which has more than 21 million subscribers.

Time Warner, the world’s largest media company, hasn’t started a review of the finances of Greenwood Village, Colo.-based Adelphia, Pace said.

Comcast CEO Brian L. Roberts has said the Philadelphia-based company also may buy some Adelphia assets.

Adelphia, which has about 5.3 million subscribers, including 1.5 million in Southern California, said last month that it would begin arranging a sale this month and complete it by the end of the year.

Adelphia founder John J. Rigas, 79, and his son Timothy J. Rigas were convicted by a jury in July of conspiracy, bank fraud and securities fraud for looting the company and lying about corporate finances.

Time Warner also is in discussions about a possible acquisition of Metro-Goldwyn-Mayer Inc., people familiar with the situation said in June. Pace said “it would be inappropriate for me to comment” about MGM.

Shares of Time Warner, owner of HBO, Time magazine and Warner Bros., rose 8 cents to $16.24 on the New York Stock Exchange.