Charter touts benefits of Time Warner Cable deal
(Reuters) - Charter Communications (CHTR.O) sees annual synergies of $500 million and other benefits such as tax savings from its proposed acquisition of Time Warner Cable (TWC.N), the company said in an investor presentation posted on its website Tuesday.
The company said annual synergies would grow to $750 million over time. Charter said the combined company would have to take on $20.5 billion in new debt, or $72.16 per share, which would bring it to a leverage ratio of 4.8 times to five times.
Charter also said in its 30-age presentation that Charter would be able to accelerate Time Warner Cable's customer and cash-flow growth, increase its margins and roll out higher Internet speeds.
On Monday, Charter, the No. 4 cable operator, proposed paying $132.50 per share, consisting of around $83 per share in cash and its own stock, in a deal valued at $37.3 billion.
Time Warner Cable shares on Tuesday rose 3.1 percent to $136.48.
(Reporting by Liana B. Baker; Editing by Leslie Adler)
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