Charter Communications traded up last week from 95 to the 96-97 range with traders citing $5-10 million trading. A $2.5 million piece changed hands at 97 1/16, said one trader. Dealers began to see prices rising for the name following a U.S. Appeals Court ruling last Tuesday ordering the Federal Communications Commission to reconsider regulations that forbid a corporation from owning both broadcast stations and cable systems in the same market. Charter had been trading off over the past couple of weeks for a combination of reasons, including negative market sentiment and disappointing forth quarter earnings. Charter's debt traded at a high of 99 in mid-January on news that the company would issue bonds to pay down its bank debt (LMW, 1/14). Calls to Kent Kalkwarf, company cfo, were referred to a spokesperson, who did not return calls by press time.
In the same ruling, the federal court also ordered the FCC to reconsider its regulation that caps broadcast group ownership at 35% of the national TV market. Market players anticipate a string of media mergers following that decision. Names such as Young Broadcasting and Sinclair Broadcast Group could be among the companies to take advantage of the decision.