TWC Stock – Time Warner Cable Rejects $62B Bid From Charter

by Christopher Freeburn | January 14, 2014 9:56 am

TWC Stock – Time Warner Cable Rejects $62B Bid From Charter

time warner cable 300x199 TWC Stock   Time Warner Cable Rejects $62B Bid From Charter[1]Time Warner Cable (TWC[2]) quickly dismissed the latest merger offer[3] from Charter Communications (CHTR[4]) on Monday.

Charter says it would pay $132.50 in cash and its own shares for TWC stock. Including debt, the entire deal is valued at $62.35 billion. It is third bid Charter has made for Time Warner Cable. Holders of TWC stock would end up with a 45% stake in the combined company if the deal goes through, Reuters notes.

News of the latest bid sent TWC stock up more than 2% in Tuesday morning trading, while CHTR stock climbed modestly.

TWC’s board called the new offer “grossly inadequate.” TWC stock has gained more than 40% since May, mostly on rising speculation that the pay TV service provider was an acquisition target[5].

Charter is controlled by billionaire John Malone’s Liberty Media (LMCA[6]). Malone has expressed interest in consolidating cable TV providers[7].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/10/time-warner-cable.jpg
  2. TWC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TWC
  3. quickly dismissed the latest merger offer: http://www.reuters.com/article/2014/01/14/us-timewarnercable-charter-idUSBREA0C1IK20140114
  4. CHTR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHTR
  5. was an acquisition target: http://investorplace.com/2013/07/deal-buzz-charter-trying-to-buy-time-warner-cable/#.UtVODHm1Kf0
  6. LMCA: http://studio-5.financialcontent.com/investplace/quote?Symbol=LMCA
  7. in consolidating cable TV providers: http://investorplace.com/2013/06/twc-might-want-to-warm-up-to-charter/#.UtVO-Hm1Kf0

Source URL: http://investorplace.com/2014/01/twc-stock-time-warner-cable-rejects-62b-bid-charter/
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