By Mark Scott
Buffalo, NY – One of the nation's leading cable television companies has its eye on troubled Adelphia Communications. Time Warner's chief financial officer says his company is interested in buying Adelphia.
Wayne Pace told investors at a conference in New York Thursday that Time Warner hasn't yet seen the cable company's books. Financial Analyst Anthony Ogorek agrees that could be a problem.
"Adelphia has not come through with audited financial statements," Ogorek said. "So, that's an obvious issue."
And that's why Time Warner's Wayne Pace says his company needs to take a hard look before going ahead with an offer. Adelphia put itself on the block in April as part of a plan to emerge from bankruptcy in the wake of an accounting scandal.
Ogorek, principal of Ogorek Wealth Management in Williamsville, says Adelphia's availability may be too good for Time Warner to pass up, despite the challenges.
"This is a rare opportunity to get a corporation of this size with this number of subscribers," Ogorek said.
Analysts and creditors estimate Adelphia is worth as much as $23 billion. While Adelphia officials have long maintained they would like to emerge from bankruptcy as a stand-alone company, Ogorek says that's appearing more and more unlikely.
"If I were a betting guy, I would tend to bet on Time Warner getting a good chunk, if not all of Adelphia," Ogorek said.
Both companies operate cable systems in New York state. Adelphia is the nation's fifth largest cable television provider.