Adelphia plan frees 23.1 mil TWC shares

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NEW YORK -- More than 23.1 million additional shares of Time Warner Cable Inc. got the green light to hit the market after Adelphia Communications Corp. said Friday that it has completed a so-called "true-up" mechanism under its bankruptcy reorganization plan.

The news came as TWC's stock on Friday was added to the Russell 1000 stock index.

Bear Stearns analyst Spencer Wang said a few days ago that the true-up should be "making the (TWC) stock more investable" as it will expand the number of shares available, and the Russell 1000 addition could become a "technical catalyst" for TWC shares.

Under the true-up, a chunk of TWC shares were held in reserve since the reorganization in February and have been valued at slightly more than $37.80 each.

The world's largest media conglomerate, Time Warner Inc., spun off a 16% stake in TWC earlier this year. After a 60-day trading trial of TWC shares, Adelphia claim holders are receiving the added shares.

A TWC spokesman declined comment Friday.

However, a source said that while the new share distribution increases the number of shares in the market, it does not affect the number of shares outstanding as they have already been counted in the number of outstanding TWC shares.
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