Cablevision’s reported $17.1 billion bid for Adelphia could prolo...

Cablevision’s reported $17.1 billion bid for Adelphia could prolong an Adelphia deal with Time-Warner-Comcast, expected to be completed in the next 2 weeks, analysts said. “We continue to believe that the reported Time Warner-Comcast joint bid is the most logical scenario for Adelphia,” said cable analyst Aryeh Bourkoff with UBS Investment Research. According to sources familiar with the deal, the joint bid totals $17.6 billion, comprised of $12.5 billion in cash and $5.1 billion in equity. “The reported new bid for Adelphia and possible divergence from its clustered strategy create uncertainty regarding the eventual strategic direction of Cablevision and any potential asset sale,” Bourkoff said. John Malone, who joined Cablevision’s board a month ago, could play a yet- unknown role, Bourkoff said: “It is unclear what Cablevision’s intentions are as to whether it is interested in cable property expansion or has other motivations.” Meanwhile, the FCC is in a wait-and-see mode with regard to the long unresolved cable ownership rule, which could become more urgent if the acquisition goes through, Commission sources told us. The proposal floated on the 8th floor before former Chmn. Michael Powell left may or may not be a starting point for a new notice of proposed rulemaking, one source in Chmn. Martin’s office said. “We're looking to Chairman Martin to see what he'll do,” another source said. Some analysts think the FCC would approve an Time Warner-Comcast acquisition of Adelphia: “The FCC has not had cable ownership rules in place for more than 4 years, making it highly unlikely that they could be used to block Comcast’s acquisition of 2 million subscribers from Adelphia. The FCC is expected to approve the deal by determining it is in the public interest.”