Charter Communications Inc. continued to suffer the aftereffects of its dalliance with Adelphia Communications Corp., sinking another 10 percent
Charter's stock hit an all-time low, $5.31 per share, before bouncing back a bit to
$5.50, amid investor concern that the MSO would buy some systems from Adelphia.
Charter chairman Paul Allen walked away from talks to buy Adelphia's Los
Angeles and Southeastern systems last week.
Charter is too heavily leveraged to borrow the $2 billion being discussed,
but investors feared that Allen would put cash into Charter in a way that would heavily
dilute existing shareholders.
Charter CEO Carl Vogel said at an investor conference that he would not do a
transaction that is "exceedingly dilutive," but he didn't rule out a deal.