Time Warner Cable shares top Charter Communications' offer price
Jan 14 (Reuters) - Time Warner Cable Inc shares rose above the price of $132.50 per share offered on Monday by smaller rival Charter Communications Inc, a deal that was swiftly rejected by the No. 2 U.S. cable TV operator.
Time Warner Cable's shares were up 3 percent at $136.40 on Tuesday morning, suggesting some investors expect a higher bid.
Calling the bid "grossly inadequate," Time Warner Cable rejected the $37.3 billion offer, the third attempt by Charter to acquire the company.
Analysts said Time Warner Cable's demand of $160 per share was reasonable and Charter could raise its bid.
"...We believe something in the neighborhood of 10 percent near-term upside (for Time Warner) if an agreement at TWC's asking price of $160 were to be announced is reasonable," Stifel Nicolaus analyst Christopher King said in a note.
Charter's Chief Executive Tom Rutledge said the company now planned to take the deal directly to Time Warner Cable shareholders.
Charter proposed to pay around $83 per share in cash and the rest in its own stock. Including debt, the deal is worth about $62.35 billion.
Charter shares were up about 1 percent at $135.38 on the Nasdaq. (Reporting by Chandni Doulatramani in Bangalore; Editing by Kirti Pandey)
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