
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, December 8, 1993                   TAG: 9312080087
SECTION: BUSINESS                    PAGE: B6   EDITION: METRO 
SOURCE: Associated Press
DATELINE: SAN ANTONIO                                 LENGTH: Medium

COX-BELL MERGER PLANNED

Southwestern Bell Corp. and Cox Cable Communications on Tuesday said they would form a $4.9 billion partnership.

The venture is the third major alliance between a regional telephone company and a large cable system, reflecting growing interest in high-volume, two-way communication services.

The blending of the two industries enables Cox Cable to get into the telephone business and vice versa, said Gretchen Shine, vice president and general manager of Cox's Roanoke Valley cable television unit, Cox Cable Roanoke Inc.

Nothing will change immediately, but for the consumer it eventually means better quality in service, Shine said.

Southwestern Bell will commit $1.6 billion to the partnership and take 40 percent ownership initially, with an option to increase to 50 percent.

The companies will manage the partnership jointly, with each having two seats on an executive committee. Cox Cable President James O. Robbins will be chief executive officer.

The partnership will own and operate 21 Cox cable systems - including Cox Cable Roanoke - provide new services to existing cable networks and pursue acquisition of other cable and programming operations, the companies said. A definitive agreement is expected in the spring and all details should be hammered out by next fall, they said.

Earlier this year, Bell Atlantic Corp. agreed to buy the largest cable TV company, Tele-Communications Inc., and U.S. West made a $2.5 billion investment in the cable operations of Time Warner Entertainment.

Southwestern Bell operates local phone service in Arkansas, Kansas, Missouri, Oklahoma and Texas. It is buying a cable system in suburban Washington, D.C., that will not be included in the Cox deal.

Atlanta-based Cox's cable system hads 1.7 million customers and an estimated worth of nearly $3.5 billion. It also has 17 daily newspapers, 20 radio and television stations and an automobile auction business.

Staff writer Melanie S. Hatter contributed to this story.

by CNB