U S West Merger Deal Restructured

US West Inc.’s $5.3 billion purchase of Continental Cablevision Inc. has been changed to value the US West shares used in payment above their current market price.

The companies said the new terms, announced Monday, resolve the deal’s last remaining financial issues and it is now expected to close by the end of November. It was first announced in February, but the falling stock price of US West Media Group shares apparently put it in jeopardy.

US West originally was to use its US West Media stock toward $2.8 billion to $3.3 billion of the total purchase price, valuing it in a range of 15 percent above or below $24.50 a share.

The stock, however, has since fallen to less than $17.

In altering the deal, Continental has agreed to value each US West Media share at $21, near the bottom of the prior range. It will still receive $2.8 billion to $3.3 billion of the total price in the common shares.

US West will still pay $1 billion to $1.5 billion in cash and $1 billion in US West Inc. preferred stock, convertible into US West Media shares, for the balance of the $5.3 billion purchase price.