AT&T to Sell Off 340K Subs


AT&T Broadband has restarted the process it suspended in July to sell
nonstrategic systems with about 340,000 subscribers in Montana, Wyoming and
parts of Colorado, with at least two bidders vying for the properties.

Back in June, three companies made bids -- Bresnan Communications, Alaskan
cable and telephony provider General Communications Inc. and New York-based
private-equity firm Avalon Equity Partners -- with several sources saying
Bresnan was the front-runner. But when AT&T Broadband restarted the process
earlier last month, Avalon dropped out, although sources said GCI is still
considered a bidder.

David Morris, a spokesman for GCI, which has about 130,000 subscribers, said
his company has expressed interest in expanding into the lower 48 states, but he
would not comment on specific deals.

Most observers expect the systems to sell for about 10 times annual cash
flow, or between $2,000 and $2,500 per subscriber.

That would put the total price tag for the systems at between $680 million
and $850 million.

AT&T Broadband declined comment, as did Bresnan president Bill