Investors seem to think the terms of RCN Corp.'s (NASDAQ:RCNI) $1.2 billion sale to Abry Partners LLC are not necessarily final. Shares of the Herndon, Va., company have traded above the $15 per share price that Abry agreed to pay in early March, suggesting that the market expects more.

The deal allows RCN to seek higher bids, so a rival suitor could emerge to drive the price higher.

It's not a wild suggestion. The cable sector appears primed for activity. PE firms had been active before the credit squeeze in 2007, and with the increasing availability of financing, more acquisitions are expected. Several PE firms have held cable investments for five years or more, and could be ready to exit.

Abry has been the most active lately. In addition to RCN, it bought a controlling stake in San Marcos, Texas, cable operator Grande Communications Holdings Inc. in September. Abry has owned its other cable outfit, Atlantic Broadband Finance LLC, of Quincy, Mass., since 2003. It purchased Atlantic Broadband through a different fund than the one buying RCN, and may view the company in a different light than Grande and RCN.

Recall that Carlyle Group put Stamford, Conn., cable operator Insight Communications Co. up for sale in 2007, but pulled the auction after credit tightened. Providence Equity Partners has held Purchase, N.Y., cable company Bresnan Communications LLC since 2003.

WideOpenWest LLC, meanwhile, is a potential buyer. January analyst notes from both Moody's Investors Service and Standard & Poor's said that the Avista Capital Partners portfolio company signed a letter of intent to acquire a peer. Avista acquired WideOpenWest for $830 million in 2006 from Abry and Oak Hill Capital Partners LP. The firm already scored a $400 million dividend in 2007, more than doubling its $180 million equity investment.

Charter Communications Inc. exited bankruptcy protection in November. It may take time for the new board to devise a strategy, especially since CEO Neil Smit left for Comcast in January, but Charter could buy or sell cable systems.

Cable faces new challenges from Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T). But if the credit markets provide the means, cable operators will pick up where they left off before the crisis.