Cox Communications Sees Its Shares Leap After Parent's Offer Cable Firm Would Go Private Move by Cox Enterprises seen as a confidence vote for embattled cable market.(A)

Byline: REINHARDT KRAUSE

Shares in Cox Communications soared 20% Monday after its parent -- family-owned media firm Cox Enterprises -- made a surprise $7.9 billion offer to take the nation's fourth largest cable firm private.

Other cable stocks also rallied. Cablevision Systems, another takeover candidate, saw its shares rise 10.7% to 19.34. Comcast stock rose 4.9% to 28.75, while Charter Communications gained 1.9% to 3.15. Shares in Insight Communications, a small cable firm, rose 1.6% to 8.94, and shares in Mediacom Communications, another small firm, rose 3.5% to 6.80.

Cable stocks have underperformed the market this year amid growing competition from phone companies and satellite TV rivals. While investors are wary of cable firms' prospects, media firm Cox Enterprises seems attracted to Cox Communications' mix of pay TV, Internet access and phone services.

Cox Enterprises' interest in taking full control of the cable business should boost valuations of other cable firms, says Craig Moffett, analyst at Bernstein Research.

"If they thought things were going to get worse, why would they double down?" Moffett said. "It's impossible to take this as anything other than a vote of confidence in cable."

Cox Communications stock closed at 33.16 Monday. That's above Cox Enterprises' $32 a share cash offer -- a 16% premium over the cable firm's closing price Friday.