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AT&T to buy rest of Lenfest
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May 4, 1999: 9:39 p.m. ET
Stock purchase deal could total $2.2B, gives AT&T cable foothold in Philly area
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NEW YORK(CNNfn) - In a stock deal that could be worth more than $2 billion, AT&T on Tuesday agreed to buy the remaining half of Philadelphia-area cable provider Lenfest Communications (LCI) that AT&T does not already own.
The purchase puts the No. 1 U.S. long distance phone carrier's one step closer to dominating the national market on cable lines, which can be used in the transmission of voice, data and video.
AT&T and Lenfest, which is half owned by the Lenfest family, did not disclose exact terms of the deal. But AT&T said in a statement it expects to issue, based on current value, approximately 43 million shares of AT&T common stock to the Lenfest family once the transaction receives the necessary legal and regulatory approvals.
At the close of trade in New York Tuesday, shares of AT&T (T) were up 1/2 at 51-9/16. Based on the closing price, the value of the acquisition would total $2.22 billion.
The purchase of LCI, which serves about 1.5 million cable customers in the greater Philadelphia area, is one in a string of several cable company purchases AT&T has made in recent months in an effort to reach directly into customers' homes and offices. By accessing customers via cable, AT&T can offer phone service and high-speed Internet access without using the copper wire networks controlled by the Baby Bells.
Soon after the Lenfest deal was announced, AT&T and Comcast (CMCSA) said they reached a deal clearing the way for AT&T to acquire cable giant MediaOne (UMG). AT&T already covers a third of the U.S. market following its acquisition of TCI; buying MediaOne would give it national coverage of around 65 percent.
Lenfest Communications' principal subsidiary is Suburban Cable. Other subsidiaries include cable advertising firm Radius Communications, cable marketing firm StarNet, news programmer Tri-State Media and telemarketing firm TeleStar.
The Oaks, Penn.-based company also owns interests in Garden State Cablevision, L.P., Raystay Company; Susquehanna Cable Company and Clearview Partners. 
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AT&T
Suburban Cable
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