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Adelphia Sets Bite-Sized Breakup

Looking to gin up a large number of bidders, Adelphia Communications Corp. executives have decided to auction the company off in smalller chunks than expected.

The cable operator said it is willing to divide its operations into seven different clusters, bite-sized pieces that could sell for as “little” as $2 billion each.
Altogether, Adelphia’s cable operations are believed to be worth $18 billion-$20 billion, but only one or two media giants could handle a deal that big. A seven-way split would likely attract private equity firms who could swing a deal or two worth $3 billion-$5 billion.
The clusters include metro L.A. and South Florida, which are the most lucrative. But the company also separated its extensive Pennsylvania systems from its western New York operations (including Buffalo). Other clusters include New England; Cleveland and Ohio; plus a grab bag of systems in Virginia, Maryland, Colorado Springs and Kentucky.