Buffalo, NY – AT&T may buy out its partner Adelphia Communication in their joint Parnassos cable TV venture.
Parnassos was formed in 1998 when Tele-Communications, Inc. (TCI), later acquired by AT&T, entered a partnership with Adelphia. TCI was the long-time operator of the City of Buffalo's cable system. All told, Parnassos cable systems have about a half million subscribers here, as well as in Pennsylvania and Ohio.
Adelphia owns two thirds of Parnassos, and AT&T owns the other third. Published reports quote financial analysts as saying the move could be beneficial to both companies.
In other developments, it was revealed Monday that Highfields Capital Management increased its stakehold in Adelphia from nearly seven percent to nine percent, purchasing nearly five million shares on Friday at 74 to 77 cents per share.
Despite being delisted by Nasdaq Monday, trading continued in Adelphia stock, in the over-the-counter market. In early trading Tuesday, Adelphia was marginally down at 77-cents a share.