Adelphia Communications Bond Prices Spike Amid Takeover Speculation

Strategic Insights -

Adelphia Communications, the nation's fifth-largest US cable operator, has 5.5 million subscribers, mostly in the western US. The company is considering putting itself up for sale as it prepares to emerge from bankruptcy protection. This move has sparked speculation about potential takeover candidates, with Comcast and Cox being the two biggest names to emerge. Comcast's CEO has announced that the company will take a hard look at Adelphia, while Cox CEO Jim Robbins has expressed interest in possibly getting in on an acquisition.

Key Takeaways:

  • Adelphia Communications has 5.5 million subscribers, mostly in the western US.
  • The company is considering putting itself up for sale as it prepares to emerge from bankruptcy protection.
  • Comcast's CEO has announced that the company will take a hard look at Adelphia.
  • Cox CEO Jim Robbins has expressed interest in possibly getting in on an acquisition.
  • Adelphia's 9.87% bonds due 2005 moved up 8 points to 107.62.
  • Other Adelphia bonds also moved higher, including 10 other issues.
  • Nortel Networks' CEO resignation and restatement of 2003 earnings cast a shadow over the telecom sector, affecting companies like Lucent Technologies and Level 3 Communications.
  • Level 3 Communications' 12.8% bonds due 2010 dropped nine points to 67.25.

Statistics:

  • Adelphia Communications has 5.5 million subscribers.
  • Adelphia's 9.87% bonds due 2005 moved up 8 points to 107.62.
  • Ten other Adelphia bonds also moved higher.
  • Level 3 Communications' 12.8% bonds due 2010 dropped nine points to 67.25.
  • Qwest Communications was fined $21 million by the Arizona Corporation Commission for engaging in illegal and anti-competitive business practices.

Sources:

  • Thomson Media Inc. (2004)
  • Advantage Data (mentioned in the article)