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To: Victor Lazlo who wrote (142357)	5/20/2002 2:38:54 PM
From: H James Morris	Respond to of 164684

Even though some cable stocks are beaten down it might be time to invest in Paul Allens Charter communications (CHTR). >>WASHINGTON -- Paul Allen faces the prospect of having to repurchase a stake in his Charter Communications Inc. for about $630 million, more than triple the current market value of the securities. On April 12, AT&T Corp.'s broadband unit submitted a written notice of its intention to sell 24.3 million Charter Class A preferred membership units back to Allen. Each membership unit is convertible into one Charter Class A share. The repurchase obligation, disclosed by the billionaire co-founder of Microsoft Corp. in a regulatory filing, is a legacy of Allen's effort to build St. Louis-based Charter into a cable television powerhouse. In a series of transactions that took place several years ago, Charter issued securities to purchase cable businesses. To complete these acquisitions, Allen personally guaranteed the securities by agreeing to repurchase them at a set price if the seller so desired. Company shares are trading at $8.07 each, though, and AT&T holds the rights to put its units back to Allen at $25.93 each. By exercising this right, AT&T would receive $630 million for a stake whose value today is $196 million.<<