Time Warner Cable officially became public company Tuesday, with shares of the new company expected to begin trading as early as March 1.
Time Warner Cable became a public company on Tuesday as a result of cable company Adelphia Communications Corp.â€™s Chapter 11 plan having become effective on today. Class A shares of the company will begin trading on the New York Stock Exchange under the â€˜TWCâ€™ symbol as early as March 1, 2007, parent company Time Warner (NYSE: TWX) said.
We believe Time Warner Cable is positioned to compete successfully in the fast-growing cable sector and to increase value for the shareholders of Time Warner and Time Warner Cable, commented Dick Parsons, chairman of Time Warner, in a statement.
On July 31, 2006, Time Warner Cable completed the acquisition of assets from Adelphia. In return, TWC paid Adelphia for the assets with 16 percent of its outstanding common shares.
Under Adelphiaâ€™s Chapter 11 reorganization plan, effective today, Adelphia will distribute the TWC shares to Adelphia shareholders. This will end Adelphia's obligation to sell a portion of the shares in an underwritten public offering. This option, under the plan, enabled TWC to become public without a traditional underwritten offering.
Shares of the Time Warner rose nearly 1.56 percent, or $0.33 to $21.50 on the New York Stock Exchange.