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Technology Stocks : Charter Communications (CHTR) -- Ignore unavailable to you. Want to Upgrade?

To: Sarkie who wrote (56)	9/28/1999 9:00:00 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 2437

CHTR sets initial price range: biz.yahoo.com Tuesday September 28, 6:36 pm Eastern Time Allen sets Charter IPO at 170 mln shares, $17-$19/shr By Jeremy Pelofsky WASHINGTON, Sept 28 (Reuters) - Media mogul Paul Allen unveiled his plans to sell stock in his cable operation, Charter Communications Inc., that could reap almost $3 billion, making it one of the largest initial public offerings ever. Charter Communications, the fourth largest cable television operator in the United States, plans to sell 170 million shares of Class A common stock in a projected price range of $17-$19 per share, a Securities and Exchange Commission filing said on Tuesday. The company, based in St. Louis, will likely raise $2.94 billion in the IPO and said it plans to use the proceeds for acquisitions, among other purposes, the filing showed. Offering traditional and digital cable services, Charter serves about 3.4 million customers and with the acquisitions that will be completed after the IPO, the company will almost double its service to 6.2 million customers, the filing said. With $1.4 billion in revenue during the first six months of 1999, Charter posted $223.5 million in losses during that period, the filing showed. Allen, 46, and the second-wealthiest American behind Bill Gates of Microsoft Corp. with an estimated $40 billion, will control about 93 percent of Charter's voting power after the IPO, the filing said. The company expects to conclude several acquisitions once the funds from the offering are available, including Avalon Cable LLC, Falcon Communications LP and Bresnan Communications Co. LP. The rest of the funds will be turned over to Charter Communications Holding Company in exchange for a promissory note with a principal amount equal to the retained portion in exchange for 170 million membership units of the holding company. The membership units will represent about a 31 percent equity interest in the company, the filing said. In the offering, Charter will sell 144.5 million shares in the United States and Canada and the remaining 25.5 million shares outside that area, the filing said. The underwriters, Goldman, Sachs & Co., Bear, Stearns & Co. Inc., Morgan Stanley Dean Witter, Donaldson, Lufkin & Jenrette, among others, have been allotted 25.5 million extra shares in the event of heavy demand. Charter, has applied to sell its shares on Nasdaq under the symbol ``CHTR'.