Company to exercise option prematurely
NEW YORK — Comcast Corp., which agreed three months ago to acquire a 30% stake in Jones Intercable, announced Wednesday that it will prematurely exercise an option for an additional 2.9 million shares held by Jones’ founder and CEO.
The option was not to have been exercisable until December 2001, although it was anticipated (Daily Variety, May 27) that founder and CEO Glenn R. Jones, Comcast and Bell Canada might agree to accelerate the exercise date.
The revised closing, still slated for the first quarter of 1999, now has Comcast paying Bell Canada $500 million in cash and, according to an official statement, “affiliates of Mr. Jones” $200 million for the extra shares.
Once that’s done, Comcast will possess a 37% economic stake and a 47% voting stake in Denver-based Jones Intercable.