CEQUEL Strikes Again2/25/2003 4:16 AM Eastern
Former Charter Communications Inc. CEO Jerry Kent is on a roll, landing his
third cable deal in about two weeks, the latest of which is a $129 million
acquisition of Broadwing Communications Services Inc., a Cincinnati-based
Kent's investment company, CEQUEL III, teamed up with
telecommunications-equipment provider Corvis Corp. to purchase Broadwing
Communications through a joint venture called C III Communications LLC.
C III Communications purchased the assets of Broadwing Communications,
including the brand name, for cash. CEQUEL will manage the company.
This is the third investment/purchase by CEQUEL III in less than a month.
On Feb. 12, the company announced a management agreement and investment in
Classic Communications Inc. Nine days later, CEQUEL III said it would purchase
Shaw Communications Inc.'s Houston-area cable systems for $85 million.
The deal is still subject to regulatory approvals.
'It is a sound strategic fit with the investments CEQUEL III has made to date
and those we hope to make in the future,' Kent said in a prepared statement.
Broadwing Communications, formerly known as IXC Communications Inc., was
purchased by Cincinnati Bell Inc. in 1999. Cincinnati Bell even changed its name
to Broadwing Inc. as part of the deal.
But the acquisition never lived up to its expectations amid the collapse in
demand for telecommunications services.
Broadwing Inc. said it will use the proceeds from the sale to pay down