Mediacom to buy back some shares from Shivers

Cable television company Mediacom Communications Corp. said Monday it will buy back 30 percent of its outstanding stock from Morris Communications Co. affiliate Shivers Investments.

The transaction, which involves a tax-free split off, will give Shivers all of the shares of a new Mediacom division and $110 million in cash in exchange for the approximately 28.3 million Mediacom shares it currently holds.

Including the buyback, Mediacom's total outstanding stock would be about 66.3 million.

Shivers and Morris are controlled by William S. Morris III, a Mediacom board member.

The buyback is targeted to close during the fourth quarter, subject to regulatory approvals and other customary closing conditions. At that time Morris and Craig S. Mitchell, Morris Communications senior vice president of finance, will resign from Mediacom's board.