Charter Communications (NYSE:CHTR) shares spiked late yesterday before returning to previous levels after billionaire investor Paul Allen disclosed in a Schedule 13D/A filing that he may pursue a recapitalization, restructuring or possible going private transaction. Shareholders are hoping that he can effect some change given the company's stagnant share price.

Paul Allen owns a majority stake in the company through Class B shares that hold greater voting rights than regular shares. There has been much speculation that Charter may become a takeover target given the fact that it has over five and a half million subscribers and is one of the only traditional cable companies that remains open to a sale. However, the CEO continues to insist that the company is on the buying end not the selling end.

There are a lot of rumors going around as to Paul Allen's plans for the company. Some suggest that he will recapitalize the company and provide a dividend to shareholders while others insist that he is intent on buying the company outright. Regardless, any measures to improve shareholder value is a welcome change for Charter shareholders. This makes CHTR a stock worth watching!

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