Adelphia Communications Corp. wants shareholders to permit
the number of authorized class-A shares to grow sixfold in an effort apparently tied to
aggressive expansion plans for its Hyperion Telecommunications Inc. subsidiary.
In a proxy statement related to Adelphia's Oct. 25
shareholders' meeting, the MSO disclosed plans to boost its authorized class-A common
shares from 200 million to 1.2 billion, its authorized class-B shares from 25 million to
300 million and its authorized preferred shares from 5 million to 50 million.
Authorizing more shares would give Adelphia's board of
directors the ability to issue new stock for financing, for issuing a dividend or stock
split, or for making acquisitions.
One industry analyst said the plan could also be tied to
Hyperion's plans to expand its commercial telephony operations from 75 to 200 markets
by the end of 2001, at a cost of about $1.05 billion.
"You could assume that they want to increase their
financing flexibility, and you can make the logical connection to Hyperion," the
analyst said, asking not to be named because of a banking relationship with Adelphia.
Adelphia currently has 50.3 million shares of class-A
common stock outstanding, 10.8 million shares of class-B common stock and 4.5 million
shares of preferred stock.