When bankrupt cable operator Adelphia Communications begins eyeing bids for some or all of its cable systems, one heavyweight contender is likely to be a joint offer from Comcast Corp. and Time Warner Cable, sources familiar with the situation said Monday.
According to sources, industry leader Comcast and No. 2 player Time Warner signed confidentiality agreements with Adelphia last week, and they are continuing to mull a joint bid, though it is still too early in the process to tell if one will be forthcoming.
Adelphia would not comment other than to say it remains "committed to running a fair and orderly process aimed at maximizing value for all constituents."
Spokespeople for Comcast and TW declined comment Monday.
According to sources, Adelphia dragged its feet for some time on whether to allow the two cable giants to bid together, since its assets could draw a higher price if the two companies had to compete with each other.
However, after receiving recent expressions of interest — whose arrival is supposed to be wrapped up at the end of this week — Adelphia's board of directors decided that it will allow a joint bid from the two cable giants if they choose to submit one.
Sources say such a powerful bid should put the duo ahead of the pack in the bidding process as they would have the financial prowess to make a bid for all of the company rather than just its most popular parts. Adelphia's assets are expected to draw bids of $17 billion or more.
Regardless, all parties have warned that it will be a long, arduous process because of the complicated nature of Adelphia's Chapter 11 bankruptcy.
More than 50 interested bidders have signed confidentiality agreements, one source said, in order to look at the company's financials more closely and decide whether they want to submit a firm bid. Due diligence has not yet begun.
